Units include a battery discharge indicator, integral charger, overload relief valve, and automatic stabilizers
that lock into place when the load is approximately 15 inches high.
They emphasized that if downside risks materialize automatic stabilizers
should be allowed to operate and short-term fiscal support would be warranted.
The few studies attempting to identify the determinants of fiscal stimulus relied entirely on economic indicators such as the output gap, automatic stabilizers
or the fiscal space (Ahrens 2009; Horton and Ivanova 2009, Prasad and Sorkin 2009).
Section III provides a framework for calculating the contribution of automatic stabilizers
to the deficit.
Without automatic stabilizers
or a strong financial-stability framework underpinned by deposit insurance, coping with the downside risks of the potentially destabilizing financial reforms that the government is pursuing will be difficult enough; a credit shock could prove disastrous.
The automatic stabilizers
should continue to play fully if the economy under or over-perform current expectations," it expected.
During a recession, government spending faces competing forces, as lower levels of economic activity result in lower revenues and, simultaneously, automatic stabilizers
such as unemployment benefits begin to increase as the labor situation deteriorates.
If the surplus target had been expressed as a target for net lending in particular years, it would have been necessary to tighten fiscal policy when the economy entered a recession and to give fiscal policy an expansionary stance in a booming economy in order to counteract the automatic stabilizers
Alisdair McKay, Boston University, and Ricardo Reis, Columbia University and NBER, "The Role of Automatic Stabilizers
in the U.
It would be much smarter to focus on the difference between cyclical and structural deficits, and to allow deficits that result from automatic stabilizers
This level of budget deficit helps attain two goals - what are known as automatic stabilizers
in the economy and budget will have an anticyclic effect and will support the economic activity in a time of crisis and potential recession in the European economy.
In the post-World War II period, business cycle fluctuations have moderated, reflecting changes in sectoral structure, automatic stabilizers
, the use of lender-of-last-resort operations, and the use of discretionary counter-cyclical policies, among other factors.