3.6.2—Fiscal policy goals
- Syllabus
- First assessment 2022
- Objective
- 3.6.2
- Level
- HL
Fiscal policy may pursue growth, employment, price stability, equity, external balance and sustainability.
Goals can conflict across time and groups; a policy should state its priority and constraint.
Identify objective, time horizon and affected stakeholders.
A transfer may reduce poverty but increase spending unless financed elsewhere.
There is no single “good” fiscal stance without context.