stimulus
STIM-yuh-luss
/ˈstɪm.jə.ləs/
Measures targeted at boosting economic activity, such as spending increases or tax cuts.
Focuses on external actions taken by governments or central banks to kick-start sluggish growth.
The story behind the word. From Latin stimulus, a sharp stick used by ox-drivers to urge animals forward. In modern economics, it represents prodding an idle economy back into motion.
Word relationships
- incentive: Incentive encourages specific actions; stimulus refers to broad economic re-energizing.
- restraint: Restraint deliberately limits economic activity to prevent overheating.
Commonly confused with
- stimulant: A stimulant is a physical substance/drug; a stimulus is an action or event encouraging response.
Word family
- stimulate (verb): To encourage activity or growth.
- stimulation (noun): The act of encouraging activity.
Collocations
- stimulus package
- monetary stimulus
- fiscal stimulus
- economic stimulus
Example sentences
- "Parliament approved an emergency fiscal stimulus package to support businesses hit by the recession." Fiscal policy debate
- "The central bank provided monetary stimulus through massive asset purchase programs." Central bank intervention
Memory hook
STIMULUS acts like a sharp prod to wake up a lazy economy. A prod to jump-start activity.
When not to use
Do not confuse economic stimulus with biological sensory stimuli without context.
Fun facts
- The plural of stimulus in formal Latin contexts is stimuli, but economic packages are usually 'stimulus measures'.
Related words
Take your vocabulary further with LangBlitz
Our English vocabulary app: FSRS spaced repetition, 5,000+ curated words across 119 topic groups, CEFR A1 to C2. Explore your mastery with the beautiful Vocabulary World feature.