It would be too much to ask a model to be able to account for these regular irregularities and, further, to be able to extract sound policy advice from it. Another relevant issue on fiscal policy relates to the appropriate moment for implementation, especially with regard to its implications for stability.
In this respect, we need to identify better ways to put together long-run objectives with short-run ones. BIS Review 82/2008  1  In the later case, we are more prone to recognize its role as a stabilizing force. However, the ability of fiscal policy on reducing the volatility of the economic cycle is under deep scrutiny, especially in the developed world.