Inside lag

In economics, an inside lag (an inside recognition and decision lag) is the amount of time it takes for a government or a central bank to respond to a shock in the economy. Its converse is outside lag (the amount of time before an action by a government or a central bank affects an economy). Inside lag comprises recognition lag, the time taken to recognize the shock, and decision lag (or implementation lag), the time taken to decide a response. [cite web|url=|title=INSIDE LAG|work=AmosWEB GLOSS*arama|publisher=AmosWEB LLC|accessdate=2006-12-30]


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