Introduction to fiscal policy
Religion & Liberty Online

Introduction to fiscal policy

Note: This is post #124 in a weekly video series on basic economics.

What is fiscal policy? As economist Tyler Cowen explains, it’s a government’s policies on taxes, spending, and borrowing. But how it’s practiced is a little more complicated. Fiscal policy can be used in an effort to mitigate fluctuations in the business cycle so as to soften the effects of booms and busts.

In this video by Marginal Revolution University, Cowen discusses expansionary fiscal policy and explains the “fiscal multiplier.” Cowen also shows why fiscal policy doesn’t always work as intended.

(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Click here to see other videos in the Introduction to Economics series.

Joe Carter

Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, a communications specialist for the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and as an adjunct professor of journalism at Patrick Henry College. He is the editor of the NIV Lifehacks Bible and co-author of How to Argue like Jesus: Learning Persuasion from History's Greatest Communicator (Crossway).