Asked by
Jeanine Blomberg
on Nov 16, 2024Verified
A "lean against the wind" policy says the government should not use stabilization policy and simply let the economy "weather the storm."
Lean Against The Wind
Lean against the wind is a policy approach where monetary or fiscal policies are used counter-cyclically to stabilize the economy, reducing excessive growth in booms and supporting growth in recessions.
Stabilization Policy
Economic strategies and actions taken by governments or central banks to stabilize an economy, aiming to reduce fluctuations in the business cycle and ensure steady growth.
Weather The Storm
A metaphor describing the ability to endure or survive through difficult or challenging times.
- Acquire knowledge on the theories and controversies associated with stabilization policy.
Verified Answer
DG
Learning Objectives
- Acquire knowledge on the theories and controversies associated with stabilization policy.