Poorly timed discretionary policy can do more harm than good.Getting the timing right with fiscal policy is generally

Question

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Getting the timing right with fiscal policy is generally more difficult than with monetary policy. This is because fiscal policy involves changes in government spending and taxation, which take time to implement and have a lag effect on the economy. On the other hand, monetary policy involves changes in interest rates or the money supply, which can be implemented quickly and have more immediate effects on the economy. Additionally, fiscal policy can be more politically contentious and subject to delays or disagreements among policymakers.

Poorly Timed Discretionary Policy Can Do More Harm Than Good