The choice between active and passive macroeconomic policy models is not the same as the choice between “firm-course policies” and “freedom of action”. A coherent macroeconomic policy (“firm-course policy” or “playing by the rules”) implies an early choice of measures that can be taken in a particular situation and which predetermine the practical steps of […]
Tag: Forecast
Problems of implementation of stabilization policy: active and passive policy of the state
Economic stabilization is associated with many practical difficulties. These include: a) time lags of fiscal and monetary policy; b) imperfection of economic information; c) volatility of economic expectations; d) ambiguity of historical analogies. The internal lag is the period of time between the moment of economic shock and the moment of taking economic policy response […]