Expansionary fiscal policy is commonly used during a recession as a government tool to stimulate economic activity.

Ultimately, fiscal policy serves as a critical mechanism for governments to steer economic activity, promote growth, and ...

Fiscal policy essentially targets aggregate demand. Companies also benefit as they see increased revenues. However, if the economy is near full capacity, expansionary fiscal policy risks sparking ...

PRESIDENT Bola Tinubu’s proposed 9.77 per cent increase in the 2025 budget from N49.7 trillion to N54.2 trillion is a double-edged sword. While a bigger budget may be necessary to address urgent ...

given all of the above, more likely the expansionary fiscal policy will end up being contractionary in terms of output. This will exacerbate the crises, especially given the “initial conditions ...

Graphic by Son Min-kyun “Tight until now... from this year, should operate an expansionary fiscal policy” According to the results of the '2025 Economic Outlook Survey' conducted by CHOSUNBIZ ...

Unemployment benefits and other social spending are also designed to rise during a downturn. These cyclical changes make fiscal policy automatically expansionary during downturns and contractionary ...

But even for them, barring a major deceleration in economic activity, postponing the adjustment altogether—or even implementing an expansionary fiscal policy—would be too risky in the current ...

Expansionary monetary policy is when a central bank increases ... These can be either fiscal or monetary in nature. The monetary policy trilemma is the inability to simultaneously have a fixed ...