Over 700 finance terms, Shmooped to perfection.
When the economy begins to suffer from serious recession or inflation, politicians will almost always intervene to try to improve the situation. Their interventions may or not be good economics-often they're not!-but you can hardly blame the politicians for trying. Nobody wants to go down in history like Herbert Hoover, the president who became a widely hated figure for failing to use the government aggressively enough to try to end the Great Depression. LInk here: http://www.shmoop.com/economic-policy-macroeconomics/fiscal-policy.html