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What Is An Economic Stimulus Anyway?

October 12, 2020 by Bautis Financial

With all of the chatter about COVID-19 economic relief packages, let's take a deeper look into what an economic stimulus is.

Economic stimulus is when the government boosts private sector growth during a recession. “Fiscal stimulus” includes reducing taxes, regulation reduction and deficit spending. Then there is “monetary stimulus” done by central banks such as interest rate cuts. 

During a recession economic growth slows and demand for products decreases. A stimulus package is a combination of fiscal and monetary actions to stimulate economic activity. The goal of the stimulus is not to replace private sector activity but to revive it.

Category: Finance News, VideosTag: COVID Relief, Fiscal stimulus, Monetary Stimulus, Stimulus, Stimulus Check, Stimulus Package
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