Fiscal
Fiscal Cliff
Definition
A sudden, sharp reduction in government spending or increase in taxation that could tip an economy into recession, typically caused by expiring legislation.
Explanation
The term gained prominence during the US fiscal crisis of late 2012, when simultaneous spending cuts and tax increases threatened to contract the economy. More broadly, it describes any abrupt fiscal tightening — scheduled subsidy removals, debt ceiling crises, or post-stimulus austerity can all create fiscal cliffs.