Fiscalism

Fiscalism is a term sometimes used to refer the economic theory that the government should rely on fiscal policy as the main instrument of macroeconomic policy. Fiscalism in this sense is contrasted with monetarism,[1] which is associated with reliance on monetary policy. Fiscalists reject monetarism in a non-convertible floating rate system as inefficient if not also ineffective.[2][self-published source?] There are two types of fiscalism: (1) contained fiscalism, which does not allow the economy to grow or decline as much as possible; and elevated fiscalism, which does not allow the economy to decline but allows for the economy to grow unrestrained.[3]

  1. ^ Bronfenbrenner, Martín (1979). "Monetarist-Fiscalist Controversy". Macroeconomic Alternatives. AHM Publishing Corporation. pp. 137–. ISBN 978-0-88295-404-2. Archived from the original on 2 September 2024. Retrieved 2 September 2024 – via Google Books.
  2. ^ Hickey, Tom (22 August 2011). "Monetarism v. Fiscalism". Mike Norman Economics. Archived from the original on 2 September 2024. Retrieved 2 September 2024.
  3. ^ "Fiscalism definition and meaning". InvestorDictionary.com. 2013. Archived from the original on 2 September 2024. Retrieved 2 September 2024.