stop-go cycle

stop-go cycle

the application by government of available macroeconomic tools to stimulate and then dampen economic activity. Such tools are used in counter-cyclical DEMAND MANAGEMENT policy to try to offset the fluctuations in economic activity associated with the BUSINESS CYCLE. Stop-go policies are often referred to in a negative sense, in that government policies of this type during the 1960s and early 1970s, especially, were either ill-timed or involved injections or withdrawals of an incorrect magnitude.

See MACROECONOMIC POLICY.

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In order to break out of that stop-go cycle, the authorities need to persist in those reforms until it becomes a virtuous cycle.
While all countries faced global inflationary pressures, Britain had also needed to choke off rising house prices and soaring levels of consumer debt - a move predicted by some to herald a return "to the old familiar stop-go cycle of overheating, inflation and recession".
He will also end the boom-bust, stop-go cycle - something no Tory Chancellor was able to do.
It will end the Boom-Bust, Stop-Go cycle which has bedevilled us, as Mr Brown said yesterday.
Until the authorities display a concerted willingness to address fiscal imbalances, India will remain locked in a stop-go cycle of growth and the sovereign could slip into a debt trap.
And he's determined to end the Tory boom-bust, stop-go cycle.
The problem for many emerging market economies is that due to both domestic and external influences, they tend to be subject to disruptive stop-go cycles.