Sentences with phrase «automatic stabilizers»
"Automatic stabilizers" are policies and systems that help the economy stay on a steady path during times of financial ups and downs, without needing any direct intervention. These stabilizers automatically kick in when there is an economic downturn, like a recession or financial crisis, and adjust government spending and taxes to limit the negative impact on people's incomes and overall economic activity. They work without any immediate action from policymakers and help to stabilize and support the economy. Full definition
A prudent approach by the government would ensure fiscal resources are available, through overt policies as well as automatic stabilizers to respond to inevitable slowdowns.
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«The Role of Automatic Stabilizers in the U.S. Business Cycle.»
Nor should one attempt to offset the impact of automatic stabilizers on the fiscal balance.
Second, monetary policy should play the lead role in stabilizing inflation and employment, while fiscal policy plays a supporting role through mechanisms like automatic stabilizers and ad hoc fiscal stimulus during recessions.
More automatic stabilizers would be nice, but you are talking to people who won't even index things for inflation.
Automatic stabilizers also arise in the tax and transfer systems of state and local governments.
The Congressional Budget Office estimates that through increased transfer payments and reduced taxes, automatic stabilizers provided significant economic stimulus during and in the aftermath of the Great Recession of 2007 - 2009, and thereby helped strengthen economic activity.
Automatic stabilizers offset fluctuations in economic activity without direct intervention by policymakers.
Today's plunging real estate and stock market prices are not a self - correcting ebb and flow in which downturns set in motion automatic stabilizers that produce recovery.
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«Indeed, studies have shown that when rates are at the effective lower bound, countercyclical fiscal policies, such as automatic stabilizers and discretionary policies, such as infrastructure spending, are highly effective,» he said.
In part, this reflects the operation of automatic stabilizers, such as declines in tax revenues and increases in unemployment benefits, that tend to accompany a downturn in activity.
Worse, PBO head Kevin Page claimed that the bulk of this deficit was «structural» — that is, not a consequence of the stimulus spending and automatic stabilizers that kicked in during the recession.
The «automatic stabilizers» should not be offset.
[1] «The UI System as an Automatic Stabilizer in Canada»: by Peter Dungan and Steve Murphy: «Canada's Unemployment Insurance Program as an Economic Stabilizer» by Ernie Stokes WEFA Canada
What is remarkable is that debtor interests have accepted this «don't worry about debt» logic about «automatic stabilizers» for nearly two centuries.
This is the result of slowdown in economic growth on the federal government's automatic stabilizers as well as the initiatives promised in the 2015 election.
During economic slowdowns, automatic stabilizers, along with discretionary policy actions, result in deficits.
«The Significance of Federal Taxes as Automatic Stabilizers.»
Automatic stabilizers are quantitatively important at the federal level.
Automatic stabilizers are features of the tax and transfer systems that temper the economy when it overheats and provide economic stimulus when the economy slumps, without direct intervention by policymakers.
These actions are contractionary, working at cross-purposes with the automatic stabilizers.