Possible Quote by Janet Yellen
“A wide range of possible fiscal policy tools and approaches could enhance the cyclical stability of the economy. For example, steps could be taken to increase the effectiveness of the automatic stabilizers, and some economists have proposed that greater fiscal support could be usefully provided to state and local governments during recessions.”
About This Quote
Source Speech: Economic Outlook Remarks, Janet Yellen, 2023
Expanding fiscal tools, especially strengthening automatic stabilizers and supporting local governments during downturns, can smooth economic cycles and reduce recession severity.
In simple terms: More fiscal tools can stabilize the economy.
Key Takeaway
Use targeted fiscal measures to cushion downturns.
Themes
economics
policy
fiscal stability
Mood
pragmatic
optimistic
Type
policy
strategic
When to use this quote
- budget planning
- state aid
- recession response
Key Concepts
automatic stabilizers
government spending
countercyclical policy
Questions to Reflect On
- What fiscal measures are most effective in a recession?
- How can we ensure timely support to local governments?
A Different Perspective
Political constraints may limit fiscal expansion.
