Macroeconomics pp 203-229 | Cite as

Fiscal Policy

  • John Evans-Pritchard


Strictly speaking, fiscal policy refers to the policy of the public treasury, but economists have narrowed this definition so that now it is taken to relate only to controls of the economy by government revenue (mainly taxation) and government expenditure. As with monetary policy, the primary historical objective of fiscal policy has been to influence the economy through the level of aggregate monetary demand. It is those fiscal controls that have dominated, but the government can also influence the supply of goods and services through the imposition of indirect taxes, such as VAT, and the use of grants and subsidies.


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Further Reading

  1. Simon James and Christopher Nobes, The Economics of Taxation, 2nd ed. (Philip Allan, 1983)Google Scholar
  2. Malcolm Crawford and Diane Dawson, ‘Are Rates the Right Tax for Local Government?’ LBR (July 1982)Google Scholar
  3. Dermot Glyn, ‘Is Government Borrowing now too low?’, LBR (Jan 1983)Google Scholar
  4. Alan Peacock, ‘Do we Need to Reform Direct Taxes?’ LBR (July 1978)Google Scholar
  5. A. R. Prest, ‘On charging for local government services’, TBR (March 1982)Google Scholar
  6. Tony Web and Penny Birdseye, ‘Why the Rate Burden on Business is a Cause for Concern’, NWBQR (Feb 1984)Google Scholar

Copyright information

© John Evans-Pritchard 1985

Authors and Affiliations

  • John Evans-Pritchard

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