The implementation lag follows the recognition lag, which measures how long it takes before the adverse condition is even noticed. Because the broad economy is such a complex set of moving parts, time delays are inevitable when trying to recognize, diagnose and fix macroeconomic shocks.
While the Federal Reserve Board has a preset schedule of when to meet to discuss monetary policy changes, they can decide to step in whenever they see fit to change interest rates, buy or sell Treasuries, or otherwise assist the economy.
Investment dictionary. Academic. 2012.
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lag — I UK [læɡ] / US verb Word forms lag : present tense I/you/we/they lag he/she/it lags present participle lagging past tense lagged past participle lagged 1) [intransitive] to not be as successful or advanced as another person, organization, or… … English dictionary
lag — lag1 [ læg ] verb 1. ) intransitive to not be as successful or advanced as other organizations or groups: TRAIL: Recent opinion polls showed the Republicans to be lagging by 13%. lag behind: Their software tends to lag behind other producers. 2.… … Usage of the words and phrases in modern English
Lag — Time Lag, Zeitverzögerung. I. Wirtschaftstheorie/Ökonometrie:1. Begriff: Zeitabschnitt zwischen der Veränderung einer Größe (Ursache) und der Auswirkung dieser Veränderung auf eine andere Größe, z.B.Ct = C(Yt–1),mit Y = verfügbares Einkommen, C … Lexikon der Economics
Inside lag — In economics, an inside lag (an inside recognition and decision lag) is the amount of time it takes for a government or a central bank to respond to a shock in the economy. Its converse is outside lag (the amount of time before an action by a… … Wikipedia
Response Lag — The time lag between when a corrective action is taken in the economy and when any changes coming from the action are noticed or felt. Corrective actions may be taken by the government directly, or more commonly by central banks or other mandated … Investment dictionary
Recognition Lag — The time lag between when an actual economic shock, such as sudden boom or bust occurs, and when it is recognized by economists, central bankers and the government. The recognition lag is studied in conjunction with implementation lag and… … Investment dictionary
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