[PRIMER] Fiscal policy: How government influences the economy

Action For Economic Reforms and the Right to Know, Right Now! Coalition prepared a primer to help people better understand the importance of fiscal policy as well as key concepts and indicators relevant to fiscal policy. This primer will also provide context as regards the country’s current economic and fiscal situation.

Economists Paul Samuelson and William Nordhaus define these three tools as means for the government to influence private economic activity:

Economist Joseph Stiglitz also provides four categories to classify government activities:

Apart from the aforementioned categories of activities, the government also establishes the legal framework within which firms and individuals engage in economic transactions. These include defining and protecting property rights and enforcing contracts. Without such a legal framework, individuals and firms may resort to stealing and fraud and there would be very little incentive to produce and invest.

– Right to Know, Right Now! (R2KRN) Coalition/Rappler.com

This piece is republished with permission from the Action for Economic Reforms and the Right to Know, Right Now! (R2KRN) Coalition. The R2KRN Coalition is a network of advocates campaigning for the passage of the Freedom of Information law and the promotion of FOI practice in the country.

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