What is Fiscal Policy?

Macro – Fiscal Policy

In this course, Dr Silvia Dal Bianco (UCL) explores the topic of Fiscal Policy. In the first module, we explore what we mean by Fiscal Policy. Then, we are going to investigate how fiscal policy can be used to influence aggregate demand and aggregate supply. After that, we are going to look more closely at government spending and taxation. In the penultimate module, we dig deeper into the topic of taxation. Finally, we look at the government budget balance (or imbalance) as well as the national debt.

What is Fiscal Policy?

In this module, we explore what we mean by Fiscal Policy. In particular, we will focus on: (i) how we define fiscal policy, including a discussion of government spending and taxation; (ii) the reasons why governments intervene in market economies, including a discussion of the allocative, redistributive and stabilisation functions of government; (iii) how governments responded during the COVID-19 Pandemic with fiscal stimulus packages; and (iv) the micro and macro effects of fiscal stimulus packages.