Where did the term 'fiscal cliff' originate?

It was popularized in 2012 by U.S. Federal Reserve Chairman Ben Bernanke to describe the set of expiring tax provisions and automatic spending cuts scheduled for January 2013.

Is 'fiscal cliff' used outside the United States?

Yes, while coined in a U.S. context, it can be applied generically to any country facing a similar confluence of abrupt fiscal tightening measures.

What is the difference between a 'fiscal cliff' and a 'government shutdown'?

A fiscal cliff refers to economic effects of laws already on the books coming into force. A government shutdown occurs when lawmakers fail to pass legislation authorizing new spending.

Can 'fiscal cliff' be used as a verb?

Informally, yes, especially in journalistic and political slang (e.g., 'The country fiscal-cliffed'). It is not standard in formal writing.

Is “fiscal cliff” formal?

Fiscal cliff is usually formal, journalistic, political, economic in register.

How do you pronounce “fiscal cliff”?

Fiscal cliff: in British English it is pronounced /ˌfɪs.kəl ˈklɪf/, and in American English it is pronounced /ˌfɪs.kəl ˈklɪf/. Tap the audio buttons above to hear it.

fiscal cliff: meaning, definition, pronunciation and examples

UK/ˌfɪs.kəl ˈklɪf/US/ˌfɪs.kəl ˈklɪf/

formal, journalistic, political, economic

My Flashcards

Quick answer

What does “fiscal cliff” mean?

A combination of expiring tax cuts and automatic government spending reductions creating a sudden economic shock.

Audio

Pronunciation

Definition

Meaning and Definition

A combination of expiring tax cuts and automatic government spending reductions creating a sudden economic shock.

A point in time where simultaneous fiscal policy changes, if not addressed by lawmakers, are projected to cause severe negative economic consequences, such as a recession or sharp decline in economic growth.

Dialectal Variation

British vs American Usage

Differences

The term originated in U.S. political discourse and is used more frequently and specifically in American English. In British English, it is understood but may be used more generically for any severe, impending fiscal tightening.

Connotations

In American English, it carries strong connotations of political gridlock and congressional failure. In British English, it is a borrowed technical term from economics/politics.

Frequency

Far more frequent in American media and political discourse. In British contexts, appears mainly in international business news or analyses of U.S. policy.

Grammar

How to Use “fiscal cliff” in a Sentence

[Country/Government] faces a fiscal cliff.Lawmakers worked to avoid the fiscal cliff.The economy fell/jumped off the fiscal cliff.

Vocabulary

Collocations

strong

approach the fiscal cliffgo over the fiscal cliffavert the fiscal cliffthe edge of the fiscal cliff

medium

the looming fiscal clifffiscal cliff crisisfiscal cliff dealfiscal cliff negotiations

weak

dangerous fiscal cliffpolitical fiscal cliffeconomic fiscal cliffmajor fiscal cliff

Examples

Examples of “fiscal cliff” in a Sentence

verb

British English

The government is trying not to fiscal-cliff the economy.
They fiscal-cliffed last quarter, causing a downturn.

American English

Congress fiscal-cliffed the country in 2012.
We don't want to fiscal-cliff again.

adjective

British English

The fiscal-cliff scenario dominated the Autumn Statement.
They were in a fiscal-cliff situation.

American English

The fiscal-cliff debate consumed Capitol Hill.
They faced a fiscal-cliff moment.

Usage

Meaning in Context

Business

Used in market analysis reports to warn investors of potential economic downturn risks.

Academic

Used in economics and political science papers to analyze the effects of legislative inaction.

Everyday

Rare in casual conversation; appears in news headlines read by the public.

Technical

A specific term in macroeconomics and public policy denoting a predicted sharp fiscal contraction.

Vocabulary

Synonyms of “fiscal cliff”

Strong

fiscal catastrophedebt-ceiling crisis

Neutral

budget crisisfiscal precipice

Weak

financial deadlineeconomic challenge

Vocabulary

Antonyms of “fiscal cliff”

fiscal stabilitybudgetary continuitysmooth economic transition

Watch out

Common Mistakes When Using “fiscal cliff”

Confusing with 'financial cliff' (less accurate). Using it for personal finance (it's a governmental term).

FAQ

Frequently Asked Questions

: It was popularized in 2012 by U.S. Federal Reserve Chairman Ben Bernanke to describe the set of expiring tax provisions and automatic spending cuts scheduled for January 2013.
: Yes, while coined in a U.S. context, it can be applied generically to any country facing a similar confluence of abrupt fiscal tightening measures.
: A fiscal cliff refers to economic effects of laws already on the books coming into force. A government shutdown occurs when lawmakers fail to pass legislation authorizing new spending.
: Informally, yes, especially in journalistic and political slang (e.g., 'The country fiscal-cliffed'). It is not standard in formal writing.
: A combination of expiring tax cuts and automatic government spending reductions creating a sudden economic shock.
: Fiscal cliff is usually formal, journalistic, political, economic in register.
: Fiscal cliff: in British English it is pronounced /ˌfɪs.kəl ˈklɪf/, and in American English it is pronounced /ˌfɪs.kəl ˈklɪf/. Tap the audio buttons above to hear it.

Phrases

Idioms & Phrases

“Kick the can down the road (instead of addressing the fiscal cliff)”
“Go over the cliff”

Learning

Memory Aids

Mnemonic

Imagine a government budget (FISCAL) walking to the edge of a steep CLIFF. If it doesn't stop, it will fall and crash the economy.

Conceptual Metaphor

GOVERNMENT FINANCE IS A JOURNEY; A SUDDEN NEGATIVE ECONOMIC EVENT IS FALLING FROM A HEIGHT.

Practice

Quiz

Fill in the gap

In 2012, the U.S. faced a major when tax cuts were set to expire.

Multiple Choice

What is the 'fiscal cliff' primarily associated with?