Fiscal Policy DelaysManaging the National Economy In the United States, the government has only a few avenues to manage the economy. These opportunities fall under the broad headings of monetary and fiscal policy. Monetary policy is under the primary control of the Federal Reserve. Its tools include interest rates and money supply. Fiscal policy, on the other hand, falls within the purview of the legislative and executive branches of government. It refers to government policy using taxes and spending to influence the economy. The topic of control of the national economy provides professionals and ordinary citizens with fodder for lively discussions and debates. It is also a topic whose popularity fluctuates over time. In recent years, emphasis has been placed on the use of monetary policy. But you shouldn't tell that to politicians. Some people won't let go of what they know and what gets them votes. Thus, Congress and the President constantly struggle to find the most "correct" fiscal policy to pursue, given their assessment of economic conditions at any given time. And therein lies a potential weakness in the argument for using fiscal policy to smooth out the troughs and peaks of the American economic machine. In the context of economic policies, it is important that there is an ability to recognize the existence of a challenge, to correctly diagnose the situation, to act in accordance with the approved policy, that all this is planned appropriately and let there be a little luck. This rather tedious phrase encompasses a whole host of arguments against using tax policy to control our national economy. In other words, we describe the recognition time, the decision time, the implementation time and the effective time. These concepts of “delay” are pretty self-explanatory. The recognition gap reflects the relative difficulty of identifying economic conditions in “real time”. The National Bureau of Economic Research's (NBER) Business Cycle Dating Committee is generally considered the official arbiter of the timing of general business cycles. The simple definition of a business cycle as representing changes, distributed across the economy, lasting more than a few months, visible in industrial production, employment, real income and wholesale trade, suggests that it is something something which will be officially recognized long later. it begins.