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Automatic Stabilizer

   Also found in: Wikipedia 0.01 sec.
Automatic Stabilizer
An economic policy or program that increases or decreases automatically to offset the current economic trend without government assistance.

Notes:
An example of such a policy would be unemployment insurance.
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In the United States, for example, the significant role played by the central government in the collection of taxes and pattern of spending means that fiscal policy provides something of a regional automatic stabilizer, raising funds in one strong region and spending them in weaker regions.
Europe after Maastricht by Suttle, Philip / Financial Executive
Indeed, this decision allowed fiscal policy to play the role of automatic stabilizer for the first time in three years and contributed in no small way to the recovery of the Japanese economy in 2003.
Corporate debt rejection: the real reason global interest rates are ... by Koo, Richard C. / The International Economy
The automatic stabilizer in current law is of limited effectiveness.
Social Security Technical Panel report to the 1991 Advisory Council ... by Social Security Bulletin
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