POLICY LAGS: A series of lags between the onset of an economic problem, such as business-cycle contraction, and the full impact of the policy designed to correct the problem, such as expansionary fiscal or monetary policy. Policy lags can take several years and are one of the key arguments against discretionary policies and for reliance on self correction and automatic stabilizers. Policy lags are often divided into inside lags, the time between the shock and the corrective policy, and outside lags, the time between the corrective policy and full impact on the economy.

     See also | economic policies | stabilization policies | inside lag | outside lag | recognition lag | implementation lag | self correction | discretionary policy | automatic stabilizers | business cycle | contraction |

POLICY LAGS, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: July 12, 2025].

Additional information on this term can be found at:

WEB*pedia: policy lags

Back to the GLOSS*arama

A comprehensive set of accounts that tracks the flow of currency and other monetary assets coming in to and going out of a nation. These payments are used for international trade, foreign investments, and other financial activities. The balance of payments is divided into two accounts -- current account (which includes payments for imports, exports, services, and transfers) and capital account (which includes payments for physical and financial assets). A deficit in one account is matched by a surplus in the other account. The balance of trade is only one part of the overall balance of payments set of accounts.

Complete Entry | Visit the WEB*pedia

Today, you are likely to spend a great deal of time visiting every yard sale in a 30-mile radius trying to buy either a wall poster commemorating yesterday or pink cotton balls. Be on the lookout for slightly overweight pizza delivery guys.
Your Complete Scope

This isn't me! What am I?

-- Peter Drucker, educator

User Feedback