Economic Stimulus


DEFINITION of 'Economic Stimulus'

Attempts by governments or government agencies to financially stimulate an economy. An economic stimulus is the use of monetary or fiscal policy changes to kick start a lagging or struggling economy. Governments can use tactics such as lowering interest rates, increasing government spending and quantitative easing, to name a few, to accomplish this.


The term economic stimulus became an everyday economic term following the recession created by the 2008-2009 Credit Crisis, which caused most, if not all, of the world's nations to slow, with many entering recessions and some depressions. Governments in many cases took unprecedented measures to stimulate lame economies through numerous economic measures.


  1. Fiscal Policy

    Government spending policies that influence macroeconomic conditions. ...
  2. Fiscal Cliff

    A combination of expiring tax cuts and across-the-board government ...
  3. Recession

  4. Depression

  5. Economics

  6. Monetary Policy

Related Articles
  1. Fundamental Analysis

    How can quantitative easing be effective in the economy?

    Take a deeper look at the impacts of the Federal Reserve's large scale asset purchase plan, better known as quantitative easing, or QE.
  2. Economics

    Understanding Supply-Side Economics

  3. Economics

    The Uncertainty Of Economics: Exploring The Dismal Science

  4. Economics

    The History Of Economic Thought

  5. Options & Futures

    Explaining The World Through Macroeconomic Analysis

  6. Economics

    How does a high discount rate affect the economy?

  7. Economics

    No Exit: What Could Happen If the Eurozone Breaks Up?

  8. Economics

    In what instances is quantitative easing used?

    Discover when, how and why the Federal Reserve and other central banks turn to quantitative easing to stimulate economic activity.
  9. Economics

    How do economies of scale work with globalization?

  10. Fundamental Analysis

    What is arbitrage pricing theory?

    Find out what arbitrage pricing theory is and how it can theoretically be used by investors to generate risk-free profit opportunities.

You May Also Like

Hot Definitions
  1. Command Economy

  2. Prospectus

  3. Treasury Bond - T-Bond

  4. Weight Of Ice, Snow Or Sleet Insurance

  5. Weather Insurance

  6. Portfolio Turnover

Trading Center