To the extent this result is driven by the automatic stabilizers in place, it is unavoidable and desirable in the short run. But policy-makers should be very careful about calls for more extensive, discretionary fiscal measures taken for stabilization purposes.
Such measures typically take effect long after the need for  BIS Review 69/2002  1  additional stimulus has passed, and they are often difficult to reverse. In the end, they often simply weaken a country's structural budget position. Without a doubt, the most suitable tool for dealing with any short-term cyclical problems in the economy is monetary policy.