What Is Fiscal Policy?

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Government budgetary decisions.

• taxes
• how it spends those taxes
• how it manages its debts
• how it raises debt
• how it manages the repayment on those debts

-> impacts iterest rates -> tax rates -> growth rates

US Govt ~ 18% of GDP

Govts don’t usually generate their own cash, it’s generally moved around, though it can be moved to places with greater multipliers and tech.

Debt usually quoted

• Real terms
• Debt-to-GDP ratio