In this view of the world, the econometrically-estimated lag lengths are as much a reflection of the periodicity of the cycle as they are of the lags of monetary policy. 7 For those who prefer a more formal explanation of the same point, see de Brouwer and O’Regan (1997).
8 “Central bankers need to brave their innate caution and be prepared to vary nominal interest rates sharply, both up and down.” (Goodhart 1992, p. 333). BIS Review 80/1997  -6-  dampening the cycle without entirely eliminating it is seen as an acceptable outcome. In this world, policy-makers are more likely to lean on the side of caution in exercising their instrument.