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What is the reason that stabilization policies do not have an immediate effect on an economy?

April 26, 2017economy immediate policies Stabilization

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Posted

What is the reason that stabilization policies do not have an immediate effect on an economy?

2 Answers

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William Morris Posted

Nothing has an immediate effect, especially when it comes to huge economic machine. We face too much financial, political and social issues nowadays according to http://planetaryproject.com/global_problems/future/analytics/major-future-challenges/ ( very useful post, by the way ).

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Stabilization policies are used to help an economy recover from a specific economic crisis or shock, such as sovereign debt defaults or a stock market crash. They are not intended to have significant immediate effect as the goal is to avoid erratic changes. ChaCha on!