Monetary Policy - ADDITIONAL NOTES - lags

3 important questions on Monetary Policy - ADDITIONAL NOTES - lags

What are the three stages of lags in the economy?

  • Recognition Lag
  • Implementation Lag
  • Impact Lag 

What is the stage that make conducting macroeconomic policy difficult?

There are three lags that happen between when a inflation or recession happens and when we figure out what the impact of the law has been: or the end process

What do we call the time it takes monetary and fiscal policies to figure out the recession or inflation is happening

The recognition lag

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