How Fiscal Policy Is Used During Recessions
By Allen Krewzz
Why Fiscal Policy Shifts During a Recession
Automatic Stabilizers vs Discretionary Stimulus
How Spending Tools Are Used
How Tax Tools Are Used
Automatic stabilizers respond immediately because they are already built into law. Discretionary measures, by contrast, depend on how quickly a legislature can act — which is why their real-world timing varies considerably from one downturn to the next.