Fiscal Policy in the News: Budgets, Deficits, and You
Deficits can expand during downturns to stabilize demand, then narrow when growth returns. Instead of reacting to headline numbers, compare borrowing costs, debt maturity, and growth to assess sustainability and near-term effects on services and taxes.
Fiscal Policy in the News: Budgets, Deficits, and You
Credits for child care, green upgrades, or research signal where leaders want activity. If a credit is refundable or temporary, its impact on budgets and behavior differs, guiding business plans and household purchases differently.