The term delay effect or time was designation in the political economy a delay between the beginning of an action, which as reaction of the political participants to a certain procedure (e.g. in the economy) to be understood can, and its effect on the range (e.g. Economics).

Example in the economy: Sinking demand on the goods market leads to a sinking offer at products. The number of unemployed would rise, there the enterprises any longer so many coworkers around the sunk demand would satisfy. With equal lasting money supply it would lead to a sunk gross domestic product.

If the government sets on a low number of unemployed and thus a high GROS DOMESTIC PRODUCT, it must intervene. The government would decide for example an increase of the demand. Now begins the time of the conversion and that can by large bureaucratic procedures and/or by the self-interests of the political participants be retarded. These delays are also called "“time lags"”.

A further example in the economy is the reaction of the exports on revaluation of the domestic currency. In the case of a revaluation of the currency the exports sink only after approximately 6 or 12 months, since the export contracts are locked into the future and buyers of the exports in its native market only a replacement to find to have, what would take time up (see J-curve-effect).

Articles in category "Delay effect"

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