A policy intended to divert an existing level of expenditure from one outlet to another. For example, tariffs or import quotas could be used to divert existing spending from imports onto home-produced goods. This is contrasted with expenditure changing policies, intended to increase or decrease total spending. The distinction applies to the impact effect of the policy concerned: if an expenditure switching policy is successful it will produce multiplier effects which also change total spending.

See also:

internal balance and external balance

• undated security
• under-capitalized
• under-developed country
• under-funded pension scheme
• underlying rate of inflation
• under-subscription
• under-valued currency
• underwriting
• undistributed profits
• UNDP
• unearned income
• unemployable
• unemployment
• unemployment benefit
• unemployment rate
• unexpected inflation
• unfair competition
• unfair dismissal
• unfunded pension scheme
• unified budget
• uniform business rate
• uniform distribution
• union
• unionized
• union/non-union wage differential