countercyclical economic policy

countercyclical economic policy definition - business

countercyclical economic policy

Government fiscal and monetary policy intended to moderate changes in economic activity. For example, government spending on highways is increased (fiscal policy) during a recession and interest rates are increased (monetary policy) during an economic boom.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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