Expansionary policy is a macroeconomic policy that seeks to boost aggregate demand to stimulate economic growth.

Contractionary policy is a macroeconomic tool used by a country's central bank or finance ministry to slow down an economy.

Understand the key differences between monetary policy and fiscal policy, their roles in the economy, and how they impact economic growth.

Consider not only the country risk differential, but the reputation of honoring debts, responsible intertemporal macroeconomics (U.S.) instead of pro-cyclical fiscal policy (Argentina), already ...

Fiscal policy involves government spending and tax measures impacting the economy and investor decisions. Contrasting with monetary policy, fiscal policy is set by legislatures and affects stocks ...

Expansionary fiscal policies are meant to stimulate the economy during recessions and other tough times. Check out some examples of expansionary fiscal policy.

Contractionary monetary policy consists of actions taken by the Federal Reserve to curtail inflation by dampening economic growth. Learn more here.

How does monetary policy work? Monetary policies are either expansionary or contractionary, depending on the level of growth or stagnation in the economy.

Expansionary policies in a slowing economy Stable macroeconomic outcomes require co-ordination between fiscal and monetary policy. The effects of expansionary fiscal policy can be nullified ...

The goal of fiscal expansionary policies is to increase the government’s investment in the economy while monetary policy is to increase the amount of money in the economy. Learn more.

Fiscal policy that increases aggregate demand directly through an increase in government spending is typically called expansionary or “loose.” By contrast, fiscal policy is often considered ...

Using this new dataset, our estimates suggest fiscal consolidation has contractionary effects on private domestic demand and GDP. By contrast, estimates based on conventional measures of the fiscal ...