what is the government's fiscal policy designed to do?
Itâs raining coins (photo: Matt Cardy/Getty Images) Fiscal policy is the use of government spending and taxation to influence the economy. Governments typically use fiscal policy to promote strong and sustainable growth and reduce poverty.
What is 'Fiscal Policy'. Government spending policies that influence macroeconomic conditions. Through fiscal policy, regulators attempt to improve unemployment rates, control inflation, stabilize business cycles and influence interest rates in an effort to control the economy.