# automatic fiscal stabilisers

- Canonical URL: https://www.gerhardmerk.de/automatic-fiscal-stabilisers
- Post ID: 604134
- Modified: 2026-08-25T12:20:06+00:00
- Language: en

## Definition

Automatic fiscal stabilisers are built-in features of public finances that cushion the economy as conditions change. When economic activity weakens, tax payments usually fall and transfers to households may rise, supporting incomes without a new government decision. When growth is strong, tax receipts tend to increase and some transfers decline, which helps prevent the economy from overheating. These built-in responses soften swings in output and employment and differ from measures that require the government to enact a new tax or spending policy.

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