What is fiscal easing?

Fiscal easing refers to a government's strategy of increasing its spending and/or cutting taxes to stimulate economic activity. This approach is typically employed during periods of economic downturn or stagnation to boost consumer demand and support growth. By injecting more money into the economy, fiscal easing aims to reduce unemployment and increase overall economic output. The effectiveness of fiscal easing can depend on various factors, including the state of the economy and the level of consumer confidence.