Fiscal policy

Fiscal policy is the government's way to control its local economy. This is done by either raising and lowering taxes or implementing a spending policy. In forex, the relevance of fiscal policy is a major factor in terms of currency behavior. Another way that the government can influence its economy is by deliberately devaluating its currency which has a very huge impact in the Forex market. Devaluation is always an subject for speculation among currency traders.

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