Fiscal policy: The best case scenario
Religion & Liberty Online

Fiscal policy: The best case scenario

Note: This is post #125 in a weekly video series on basic economics.

When and why does the government might engage in expansionary fiscal policy? When does the government increase spending, or decrease taxes, to combat a recession?

In this video by Marginal Revolution University, Tyler Cowen examines some of the government’s options, from doing nothing to taking steps to increase the velocity of money and thereby increase aggregate demand.

(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).