Inside lags in fiscal policy tend to take a long time, usually longer than the outside lags.

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Inside lags refer to the time it takes for policymakers to recognize a problem and take action, which can be a lengthy process involving data collection, analysis, and political debate. Outside lags, on the other hand, refer to the time it takes for fiscal policy changes to have an impact on the economy. These tend to be shorter because the effects of fiscal policy can be felt relatively quickly through changes in consumption, investment, and employment.

Inside Lags in Fiscal Policy Tend to Take a Long