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Sagot :
Changing government expenditures or taxes at will in order to achieve national economic goals such as high employment and price stability.
The difficulty of explaining to politicians how countercyclical fiscal policy that runs against the tide of the business cycle should work is a final issue for discretionary fiscal policy.
Discretionary fiscal policy is a change in government spending or taxes. Its purpose is to expand or shrink the economy as needed.
Politics and voter appeasement can sway fiscal policy, resulting in poor decisions that are not informed by data or economic theory. Monetary policy can undermine efforts if it is not coordinated with fiscal policy.
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