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Username: ForexGuy

Rating:
Guru Stars

Asked to: Chaoxiang Lee

Date Created: 30 Dec 2014
Category 40
Tag Forex
Question What is fiscal policy?
Advice from Guru
Hi Forex Guy,

The fiscal policy includes any expenditures of the country. Managing taxes and spending, policymakers have a significant impact on the economy. Public money is received from taxes or government stock trade. Government expenses are usually used for infrastructure development, working-out of important social projects or compensation for civil servants. This is a significant method of the economy stimulation, which can become the most powerful tool against the recession.

Thus, liberal fiscal policy can have a positive effect on the quantity of investments put in the currency that will surely lead to its value growth.

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