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Essay

Stabilization

Essay specific features

 

Issue:

Business

 

Written by:

Stella S

 

Date added:

June 10, 2017

 

Level:

University

 

Grade:

B

 

No of pages / words:

2 / 450

 

Was viewed:

2390 times

 

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Essay content:

Such a problem is accidentally making the economic problem worse due to an ill-timed policy. There are two main causes for policy lags. They are inside and outside lags. The reason for an inside lag is it takes time to devise a policy. Inside lag involves recognizing the problem, figuring out how to combat the problem, and enacting the proper procedures to fix the problem...
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Outside lag, on the other hand, is the time in which the policy takes to start working (Sheffrin & O'Sullivan 2006. pp.548-550). The main danger of lags is its affect on unforeseen economic conditions. If an expansionary policy is adopted, but the economy was on a short decline and is doing well now, then the policy would help to over-heat the current economy causing problems...
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