Fiscal Stimulus Meaning

Fiscal stimulus or economic stimulus has been a buzzword since the year 2008 when the recession hit the global economy; many people are not aware what exactly fiscal stimulus means. Fiscal stimulus refers to the various steps taken by the government which may involve government spending more or government cutting the tax rates and so on. The main idea behind fiscal stimulus is to put money in the hands of people so that they spend more and therefore giving an economy a boost which will eventually lead to economy coming out of recession or slow growth.

However many people are not convinced whether fiscal stimulus alone can bring the economy of a country out of recession and only time will tell whether fiscal stimulus will be a success or not.


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