Flashcard Definition
The set of measures the government can undertake to achieve higher economic output, such as increasing spending and decreasing taxation.
Block Type
Flashcard
Governments implement fiscal policy in the forms of spending changes and taxation changes,. The Fraser of Allander Institute regularly publishes reviews regarding fiscal policy in Scotland, and the impacts they might have.
A major example of fiscal policy is the setting of income tax rates, which Scotland sets as it is a devolved power from the United Kingdom. Recently, the Scottish Government announced higher tax rates for higher earners in Scotland. The Fraser of Allander Institute have an article discussing this important example of fiscal policy in detail:
