fiscalism

The idea that taxation should form a central part of a government's economic policy.

Fiscalism is a necessary consequence of the historical development of the system of taxation.

What is more, the advantage of this sort of fiscalism is that government is enabled to divert the wealth of the rich from private luxury consumption to the benefit of the commonwealth and at the same time to re-distribute it more evenly.

Excessive, oppressive taxation.

The belief that fiscal policy should function as the primary macroeconomic stabiliser (e.g. for controlling inflation), often associated with the IS–LM model.

Hereby it will become clear how Keynesianism, a doctrine appealing to the monetary theorist JOHN MAYNARD KEYNES, soon converted into fiscalism, a position ascribing stronger effects to fiscal than monetary policy – and, in the extreme, denying the latter all real and nominal effects.

1993, D. M. Mithani, Dynamics of Monetary-Fiscal Policy: An Indian Perspective, Himalaya Publishing House, page 28. The doctrine of fiscalism, in essence, implies that money doesn not matter so much as the monetarists make it out. The fiscalists hold that monetary policy is important, but its potency is weakened by the institutional forces. To them, fiscal policy is, by and large, a more effective and powerful economic stabilisation device.