Delays in politics

Policy Delays, Policy Delays - Monetary Monitors Critical to Keynesian Opinions. The heirs of John Maynard Keynes believed that market failures stem from price fixing in advance, resulting from insufficient information on future conditions. In addition, in their opinion, governments should fight the effects of these stiffening. Monetists, in turn, argue that the best policy in this case is to leave the wrong prices to the operators who eventually recognize the wrong thing and take the right steps to remedy the situation. If the main problem is uncertainty, governments can contribute to improving the situation, without interfering with or impairing the status quo. This is because the government does not have an information advantage over the private sector.

Addressing policy gaps is not just about the problem of government information. Milton Friedman, in one of his essays in economic policy, distinguishes not only delays in recognition, that is, the time required to undertake certain actions and to strike a political line, but also to delay the decision, that is, the delay that determines a given policy. In addition, it can be correlated with delays in implementation, ie overcoming all barriers to bureaucratization and formalization, as ministers must draw up appropriate projects and parliaments should adopt appropriate legislation. It may take several months before easing or tightening the impact of factors such as money market conditions or exchange rate fluctuations to affect any real economic policy, which can be termed delays in efficiency. The consequences of delays

The observation of the product path without government intervention will create a continuous line, subject to fluctuations in the business environment. According to the perfect policy model, it is necessary to start stimulating the economy near the peak of the cycle, ie at the apex of the business cycle. Due to these policy delays, it would have had an impact on the economy at the onset of the recession, which would have improved the situation in the most appropriate post-crisis period. Analogously, introducing a growth braking policy would be most desirable right after the bottom of the cycle, so as to dampen growth. Bibliography

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