Discover how a policy mix combines fiscal and monetary policies to stabilize economies. Learn its components, benefits, and real-world applications in this comprehensive guide.

The Eurogroup welcomes the political agreement, which was reached in February 2024 on a comprehensive reform of the EU's economic governance framework and looks forward to its timely adoption by the ...

Daniel Garcia-Macia, Economist, Fiscal Affairs Department, International Monetary Fund Li Liu, Senior Economist, Fiscal Affairs Department, International Monetary Fund 10:45 a.m. On May 1, AEI’s ...

The twin deficits hypothesis has long been central to macroeconomic debates, positing that a government’s chronic fiscal deficit may generate or exacerbate a current account deficit. This ...

Terry Lane is a writer for Investopedia with 25 years of experience in journalism and communications. He covers personal finance, Congress, government regulations, and economics. Investopedia / Photo ...

Fiscal policy uncertainty (FPU)—ambiguity in government spending and tax plans, as well as in public debt valuation—is widely regarded as a source of economic and financial disruptions. However, ...

Fiscal policy is central to development. It can support macroeconomic stability, foster growth, and help reduce poverty. Taxes fund essential services, while public spending builds human capital and ...

This paper analyzes the impact of fiscal policy on inflation expectations across a large sample of advanced economies (AEs) and emerging market economies (EMs). We identify episodes of significant ...

HARARE, February 26, 2025—The Government of Zimbabwe recently embarked upon an important set of reforms aimed to durably restore Zimbabwe’s macroeconomic stability. To secure these reforms, it is key ...