BIS central bankers’ speeches  3  long (particularly the “decision lag”, the lag between a situation developing in which fiscal policy should become more expansionary and the decision to undertake such a policy), automatic stabilizers can play an important stabilizing role. Another important fiscal policy discussion is currently taking place in the United States.
Infrastructure in the United States has been deteriorating, and government borrowing costs are exceptionally low. Many economists argue that this is a time at which fiscal policy can be made more expansionary at low real cost, by borrowing to finance a program to strengthen the physical infrastructure of the American economy.