Fiscal Policy (2/4): The Finer Points

In the first video about fiscal policy, Tim gave us an overview of the broader macroeconomic model that provides the framework for determining how fiscal policy influences the trajectory of economic growth.  In this video, he explains us the theory behind macroeconomic policy but dig a bit deeper, looking specifically at how passive fiscal policy works, then more interestingly at the fiscal policy tools available to governments to influence their economies.