What Is an Expansionary Policy?

Expansionary fiscal policy is a fiscal policy adopted by the governments of capitalist countries based on Keynesian theory to expand private spending and reduce taxes to stimulate private investment and increase social consumption. Although the implementation of this policy has played a role in delaying the decline in production for a certain period of time, it has also caused an increase in the fiscal deficit and an increase in national debt, thereby deepening the fiscal crisis and deepening the capitalist economic crisis. ^[1]