The implementation lag of monetary policy is longer than that of fiscal policy because Congress can act more quickly then the Fed.

Question

Quizplus · Accepted Answer

The implementation lag of monetary policy is actually shorter than that of fiscal policy because the Fed can act more quickly than Congress. The Fed can change interest rates and money supply relatively quickly, while Congress has to go through a longer process of debating and passing legislation.

The Implementation Lag of Monetary Policy Is Longer Than That