M
miszk43
Guest
Should Monetary and Fiscal Policymakers try to stabilize the economy?
Con: Policymakers should not try to Stabilize the economy
[[ some information:
Monetary policy affects the economy with long and unpredictable lags between the need to act and the time that it takes for these policies to work.
Many studies indicate that changes in monetary policy have little effect on aggregate demand until about six months after the change is made.
Fiscal policy works with a lag because of the long political process that governs changes in spending and taxes.
It can take years to propose, pass, and implement a major change in fiscal policy.
All too often policymakers can inadvertently exacerbate rather than mitigate the magnitude of economic fluctuations.
It might be desirable if policy makers could eliminate all economic fluctuations, but this is not a realistic goal. -- from mankiw macroeconomics book ]]]]]]
how do i argue and give one real good example that Policymakers should not try to Stabilize the economy... i am real confused and can't understand the concept.
please help me. =[
Con: Policymakers should not try to Stabilize the economy
[[ some information:
Monetary policy affects the economy with long and unpredictable lags between the need to act and the time that it takes for these policies to work.
Many studies indicate that changes in monetary policy have little effect on aggregate demand until about six months after the change is made.
Fiscal policy works with a lag because of the long political process that governs changes in spending and taxes.
It can take years to propose, pass, and implement a major change in fiscal policy.
All too often policymakers can inadvertently exacerbate rather than mitigate the magnitude of economic fluctuations.
It might be desirable if policy makers could eliminate all economic fluctuations, but this is not a realistic goal. -- from mankiw macroeconomics book ]]]]]]
how do i argue and give one real good example that Policymakers should not try to Stabilize the economy... i am real confused and can't understand the concept.
please help me. =[