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Fiscal policy is the adjustment of government spending and taxation to manipulate macroeconomic objectives, such as inflation. For example, if inflation is above the 2% (+/-1%) target set out by the Monet...

Interest rates are payments made when repaying a loan, and are also the reward for saving. Lowering them, should, disincentivise saving and encourage spending. Lower interest rates will increase consumers...

The current account on the balance of payments measures the inflow and outflow of goods, services, investment incomes and net transfers. A deficit on the current account means that the value of imports is...

Macroeconomic policy, which is a term to describe fiscal policy and monetary policy, can often be a problem during economic fluctuations. Greece is a good example of this. As a result of their sovereign d...

Deflation is defined as the fall in the general price level of an economy. It is negative inflation. It is usually calculated using the consumer price index (CPI) which measures changes in the price level...