expansive policy的意思|示意

Expansive policies, sometimes referred to as pro-cyclical policies, involve introducing measures that stimulate aggregate demand in order to boost economic growth and employment. These measures involve increasing public spending and/or cutting taxes, which encourages private spending and leads to increased economic activity. This increased spending takes the form of increased wages, lower prices, and higher profits, leading to an expansion of the economy.

Expansive policies are typically employed during economic recessions, when the economy is in a period of protracted decline and when traditional forms of stimulus such as interest rate cuts and quantitative easing have failed to bring about a recovery. The goal of expansive policies is to increase economic growth and activity, leading to increased employment, wages, and profits.

Expansive policies have been used by governments around the world to stimulate economic activity and growth, particularly in times of economic recession. For example, in 2009, the US federal government used an expansive policy package to stimulate the economy following the Great Recession. This package included extending unemployment benefits, providing additional financial aid to state and local governments, and implementing a number of tax cuts.

Expansive policies can also be used to reduce income inequality and tackle poverty. For example, in the UK, the government’s 2010 budget included measures to reduce income inequality, such as raising the income tax threshold and raising the rate of value-added tax (VAT).

However, expansive policies must be used carefully, as they can lead to increased inflation and public debt. This is because increased public spending and tax cuts reduce the amount of money in circulation and lead to an increase in prices. Additionally, if the policy is unsuccessful and the economy does not grow, the resulting public debt could be difficult to pay off.