Automatic or independent fiscal-policy adjustment (on top of so-called automatic stabilisers that operate in any case) may be difficult to develop.
Emerging economies, in general, have fewer automatic stabilisers than rich ones do.
In the jargon, he can "let the automatic stabilisers operate in full".
She argued that they should allow "automatic stabilisers" -- higher welfare spending and lower tax revenues -- to kick in if the economy deteriorated.
The power of these automatic stabilisers is greater in Europe, where state benefits are more generous and the tax take higher, than in America.
The IMF, however, notes that taking into account automatic stabilisers, such as welfare payments to the unemployed, Germany's fiscal response is not as far behind America's as it appears.
But we argue that extra, discretionary borrowing now, over and above the effect of the automatic stabilisers, will not help with the recession - it may even make the recession longer and deeper.
Firstly, he declared, the government will allow "the automatic stabilisers" to operate - in other words the government won't cut spending even more or tax more if borrowing goes up because the economy is growing slower than hoped.
Of course the so called "automatic stabilisers" - spending which rises in a recession as benefits are paid to those out of work and tax receipts fall as companies make lower profits - must be allowed to operate.
So, thankfully, Europe's governments have said that they will set them aside and allow automatic fiscal stabilisers to work.
Federal programmes act as automatic fiscal stabilisers, siphoning off tax revenues from booming areas and transferring them to ailing regions as unemployment insurance or health benefits for the poor.
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