Stimulus

How it is used

Usually fiscal stimulus (spending and taxes) or monetary stimulus (low rates, QE). Governments announce or unveil a stimulus package; economists debate whether it is too small, too big or poorly targeted. The verb is stimulate.

Example sentences

1. The government unveiled a stimulus package worth 2% of GDP.

2. Economists warned that more stimulus could push inflation higher.

Common collocations

• a stimulus package
• fiscal stimulus
• monetary stimulus
• withdraw stimulus
• stimulus measures

Related terms

• fiscal policyThe government's decisions about taxes and public spending, used to influence demand, growth, jobs and the state of the public finances.
• government spendingMoney that the state spends on public services, investment, salaries and social payments such as pensions; a key tool of fiscal policy.
• recessionA significant fall in economic activity lasting months, with falling output, income and jobs; often defined as two quarters in a row of shrinking GDP.
• austerityA policy of sharply cutting government spending, and sometimes raising taxes, in order to reduce a budget deficit or public debt.
• quantitative easingA policy in which a central bank creates new money to buy large amounts of government bonds or other assets, aiming to lower long-term interest rates.

This word in other fields

The same English word can have a different meaning in another field:

• stimulus · Psychology

More terms: Fiscal Policy and Public Finance

• budget deficit
• public debt
• taxation
• subsidy
• debt-to-GDP ratio
• default
• public sector
• budget
• tax revenue
• income tax
• VAT
• IMF