ADVERTISEMENT. a. Let Professional Writer Help You, 6000 Fairview Road, SouthPark Towers, Suite 1200, Charlotte, NC 28210, USA. History informs us about the first method the parties developed in order to pick their presidential candidates. In Alaska ;transportation bill, nearly $1 billion went to Alaska, 47th populous state just behind California and Illinois -ultimately eliminated for the bridges, but still got the funding Congress's inability. custom paper from our expert writers, Discretionary Fiscal Policy. Inside lag and outside lag are the main categories of fiscal policy lags. Get Your Custom Essay Gravity. lag in discretionary policy. (i) There is the “decision lag,” the time required in studying the problem and taking the decision. Misappropriated time lags lead to disequilibria in the economic markets. Amid uncertainty in the nation’s foreign exchange regime and other fiscal policies, built environment professionals have called for urgent steps to address the growing unemployment rate and job losses in the construction sector. False 40. Topics include how taxes and spending can be used to close an output gap, how to model the effect of a change in taxes or spending using the AD-AS model, and how to calculate the amount of spending or tax change needed to close an output gap. More specifically, we would like to thank Mr Ahmad Rasidi Hazizi, Consul-General of Malaysia in. The framer’s method in 1787 was that. The effect of time lags in discretionary fiscal policy in the economic growth and development by the congress and the president captures a broad economic phenomenon. When congress or the president proposes fiscal policies to correct unhealthy economic conditions, the time it takes from the recognition of the problem, to the proposal of a solution, to the implementation, up to the time that the effects would yield some result normally takes a considerable amount of time. The burning question in this context is related with the timing of the fiscal measures. These lags can intensify rather than mitigate cyclical fluctuations. The Lags of Discretionary Fiscal Policy: Fiscal policy may be quite a practical tool to counteract a recession. Budget Deficit. Friday, December 28, 2018. Monetary Policy vs. Fiscal Policy: An Overview . TRUE or FALSE: Because of the lags inherent to discretionary fiscal policy, such policy is as likely to be pro-cyclical as it is to be counter-cyclical. Time lags in Discretionary Fiscal Policy, besides consuming some considerable amount of time, are also very unpredictable. The result was that the people believed that the added policy was short and late. The delay took so long that the needed effects came late. 4. Four types of policy lags are common. 38. The US employs a federal state of governance to manage and secure the totality of the individual states as mandated by the Constitution. First, the need for government intervention in the economy must be determined. PhDessay is an educational resource where over 1,000,000 free essays are collected. Studies have shown that “discretionary actions have shown little consistent response over time” (Taylor, 2003). In early 2008, it appeared that the U.S. economy was either in a recession or growing very slowly. The lag involved in this process may be too long. a. During depression the government has to use their tools i.e. Fiscal Policy Lags In order for there to be a reasonable chance of achieving the outcome desired from the application of particular economic policies it is important for there to be an ability to recognize the existence of a challenge, to correctly diagnose the condition, to take action in accordance with the approved policy, for all of it to be timed appropriately and to have some luck. Why time lags in discretionary fiscal policy can adversely affect the efforts of the Congress and the President in attempting to maintain a healthy economy.Could it happen that these time lags could actually work to destabilize the economy? Similarly, contractionary policy may “crowd in” additional … The US employs a federal state of governance to manage and secure the totality of the individual states as mandated by the Constitution. The effect of time lags in discretionary fiscal policy in the economic growth and development by the congress and the president captures a broad economic phenomenon. Policy Lags The use of fiscal policy encounters time lags, or policy lags, between the onset of an economic problem, such as a business-cycle contraction, and the full impact of the policy designed to correct the problem. a. A discretionary fiscal policy. Test. Terms in this set (6) Discretionary fiscal policy -deliberate changes in gov spending and taxing to influence economy. (http://www. UK fiscal policy. Fiscal policy, every economist should know, is characterized by its lagged effect. There are delays in proper timing of public spending. More specifically, we would like to thank Mr Ahmad Rasidi Hazizi, Consul-General of Malaysia in. This fiscal policy is also used by state and local administrators to make the political economy steady. Lags. Scholars Comparing Monetary Policy to a Fiscal Policy Time Lags of Monetary and Fiscal Policies GDP: Fiscal and Monetary Policy monetary and fiscal policies macroeconomics questions for monetary policy Monetary Policy: Money, Credit, the Federal Reserve U.S. Federal monetary policy Discretionary fiscal policy Monetary Policy of India Time lags on Discretionary Fiscal Policy . These time lags could actually cause discretionary fiscal policy to A. destabilize real GDP because by the time a policy has begun to have its effects, the economy might already be in worse trouble and the policy action might push real GDP down faster than intended, thereby making real GDP less stable. Reassessing Discretionary Fiscal Policy. Time Lags in Discretionary Fiscal Policy Recognition lags stem largely from the difficulty of collecting economic data in a timely and accurate fashion. Are undesirable, because the policy action may be inappropriate by the time its impact is felt . It takes some time for policy makers to realize that a recessionary or an inflationary gap exists—the recognition lag. Are desirable, because they result in eliminating the gaps. gov/ftpdocs/89xx/doc8916/MainText. However, the implementation lag in fiscal policy is likely to be more pronounced, while the impact lag is likely to be less pronounced. UK Budget deficit. Don't use plagiarized sources. Purchase Solution. Don’t miss a chance to chat with experts. Recognition lags stem largely from the difficulty of collecting economic data in a timely and accur-ate fashion. The word 'monetary' refers to the money supply of a nation, which is controlled by the central bank. 3.1 Lags Discretionary fiscal policy is subject to the same lags that we discussed for monetary policy. This is because there was no way for the President to directly quantify the needed policy to ease out the economic stress after the September 11 attack. Economics: Principles, and Policies, 16/e.. Retrieved March 23, 2007 from https://www.esa.doc.gov/Speeches/NABEFINAL.doc, Auerbach, A. Fiscal policy is primarily made at the federal level with the help of the acts of Congress and deeds by the President. The time it takes after a problem is recognized to choose & enact a fiscal policy in response is the _____ lag. Semiotic Analysis of Barack Obama in Time Magazine. Takes time for democracies to pass laws. We use cookies to give you the best experience possible. A cut in government expenditure on, for instance, education would reduce aggregate demand. You can get your Effective discretionary fiscal policy is just like mastery of any art, that a group of body, the congress and the president, must become a guru in order for discretionary policies to be effective. They added that COVID-19 infections appear to have peaked, high-frequency growth indicators are coming in strong, government policy action … It might still make sense to use it in extreme economic situations, like an especially deep or long recession… Don’t miss a chance to chat with experts. True b. Don't use plagiarized sources. You can get your However, the most adequate system of recession control using discretionary fiscal policy relate to an estimation of the most adequate time period with which such recession period is to operate in so as to provide the most lucrative legislative tools. First it's important to distinguish between the terms 'monetary' and 'fiscal' since they're used so frequently. A) Choose one (1) concept from the Chapter Section Titled “Key Concepts,” and: Key Concept: discretionary spending mandatory spending discretionary fiscal policy expansionary fiscal policy contractionary fiscal policy supply-side fiscal policies Laffer curve automatic stabilizers information lag recognition lag decision lag implementation lag public choice theory deficit surplus … In Alaska ;transportation bill, nearly $1 billion went to Alaska, 47th populous state just behind California and Illinois -ultimately eliminated for the bridges, but still got the funding Congress's inability. monetary and fiscal policy very effectively. Write. C) Information reaction lag. Upon implementation of the discretionary policy, these prior investments could be affected by massive competition of new investment resulting in a scenario where the discretionary fiscal will worsen the economic condition. The greatest deal counts for the implementation lag in the Chamber of Deputies. Policy lags, especially inside lags, are often different for monetary policy than for fiscal policy. Time Lags. Monetary policy and fiscal policy refer to the two most widely recognized tools used to influence a nation's economic activity. Average implementation lag of discretionary fiscal policy in the Czech Republic is 2.4 quarters. The economic literature on policy coordination tends to be about situations where the fiscal and monetary authorities have one or more of the following: very different views of economic welfare, 5 inconsistent policy objectives, policy that is totally discretionary, or a tendency to get involved in game-like behaviour with one another. Expansionary fiscal policy may result in the crowding out of private investment and net exports, reducing the impact of the policy. Although both fiscal and monetary policy have lags, a special problem of fiscal policy, at least in the United States, is that the decision-making part of the process can be long and unpredictable. A country's fiscal policy can dictate the actions of a companies. At recession, the state of GDP in terms of aggregate supply and also aggregate demand are usually not at equilibrium. Expansionary fiscal policy can help to end recessions and contractionary fiscal policy can help to reduce inflation. In fact, discretionary fiscal policy is subject to three time lags. Unless the variations in taxes and public expenditure are neatly timed, the desired counter-cyclical effects can not be realized. Certain measures, such as varying the expenditure programs and tax rates, may have temporary stabilizing effects. Mone… By continuing we’ll assume you’re on board with our cookie policy, Your Deadline is Too Short? Retrieved on 11th March 2008 form, http://www.cbo.gov/ftpdocs/89xx/doc8916/MainText.4.1.shtml, Remember. One strength of the use of discretionary fiscal policy is the timing lags. When the tools for economic recession become counteractive, the state economic stability is therefore compromised. Policy lags arise because government actions are not instantaneous. The way things look right now, there is no chance that Republicans in Congress are going to feel as if they have any reason to cooperate. Is There a Role for Discretionary Fiscal Policy?. It uses these as vehicles to infl… Discretionary Fiscal Policy versus Monetary Policy . This is just a sample. The implementation of fiscal policy is basically rooted in the budget of the government. We gratefully acknowledge the assistance given to us by many people in this research project. Time lags in Discretionary Fiscal Policy, besides consuming some considerable amount of time, are also very unpredictable. Created by. Discretionary fiscal policy is subject to the same lags that we discussed for monetary policy. A government may implement a deflationary fiscal policy (also called a contractionary fiscal policy) to reduce inflationary pressure. (2016, Aug 22). Term policy lags Definition: A series of lags between the onset of an economic problem, such as business-cycle contraction, and the full impact of the policy designed to correct the problem, such as expansionary fiscal or monetary policy.Policy lags can take several years and are one of the key arguments against discretionary policies and for reliance on self correction and automatic stabilizers. B. The federal government’s headquarters is centered in. Retrieved from https://phdessay.com/discretionary-fiscal-policy/. The worst scenario would occur when discretionary fiscal would actually work against what it was intended for. Given the uncertainties over interest rate effects, time lags, temporary and permanent policies, and unpredictable political behavior, many economists and knowledgeable policymakers had concluded by the mid-1990s that discretionary fiscal policy was a blunt instrument, more like a club than a scalpel. Solution Summary. Expert Answer 100% (1 rating) True. 2 Discretionary fiscal policy is that component of fiscal policy that is due to exogenous government action or extraordinary non-economic phenomenon, and not a systematic response to output or macroeconomic conditions. Certain measures, such as varying the expenditure programs and tax rates, may have temporary stabilizing effects. can use them for free to gain inspiration and new creative ideas for their writing assignments. Expansionary fiscal policy can help to end recessions and contractionary fiscal policy can help to reduce inflation. (ii) Once the decision is taken, is an “execution lag… We gratefully acknowledge the assistance given to us by many people in this research project. The Federal Reserve Bank uses monetary policy to control and moderate the volume of money, as well as credit and interest rates. The opposite is a commitment policy. Fiscal policy is most effective when policy lags are _____. Five months later President Bush added expensing provisions and unemployment benefits. SEMIOTICS ASSIGNMENT The front cover of TIME magazine, issued on December 10, 2007 was taken before the start of the presidential campaign in America, and the man on the front. These delays are known as fiscal policy lags. The word 'fiscal,' however, means 'budget' and refers to how the government spends money. The executive branch usually proposes fiscal policy, but the legislature must enact it. PDF | This study examines the role of fiscal and monetary policy on economic growth in Nigeria. The Lags of Discretionary Fiscal Policy: Fiscal policy may be quite a practical tool to counteract a recession. A discretionary fiscal policy is the level of legislative parameters which are used as action policies for providing stimulus for the effect of control of economic recession. When congress or the president proposes fiscal policies to correct unhealthy economic conditions, the time it takes from the recognition of the problem, to the proposal of a solution, to. Match. (2002). Implementation lag is the length of period between decision of the economic policy makers on the actual response to the fundamental change in the economy and implementation of this response to the legislation. In general, it takes anywhere from six to twelve months after implementing policy changes to experience major improvements. The effect of time lags in discretionary fiscal policy in the economic growth and development by the congress and the president captures a broad economic phenomenon. automatic stabilizers are not subject to the same time lags as discretionary fiscal policy. The effect of time lags in discretionary fiscal policy in the economic growth and development by the congress and the president captures a broad economic phenomenon. If the economy is growing too fast, fiscal policy can apply the brakes by raising taxes or cutting spending. Expansionary fiscal policy may result in the crowding out of private investment and net exports, reducing the impact of the policy. Retrieved from https://phdessay.com/time-lags-in-discretionary-fiscal-policy/. For instance, when the UK government cut the VAT in 2009, this was intended to produce a boost in spending. Due to the nature of the political process, the time lapse between when a need is recognized and when the impact of the appropriate fiscal policy is felt may be considerable. Monetary policy functions as a set of instructions implemented by the Federal Reserve Bank. In macroeconomics, discretionary policy is an economic policy based on the ad hoc judgment of policymakers as opposed to policy set by predetermined rules. The length of time needed to become aware of an economic problem is called the _____ lag. Its purpose is to expand or shrink the economy as needed. Previous question Next question Get more help from Chegg. Options for Responding to Short-Term Economic Weakness. Policy Lags: During the recent times, there is not much argument about the desirability or otherwise of a discretionary fiscal policy. True b. Time lags in Discretionary Fiscal Policy, besides consuming some considerable amount of time, are also very unpredictable. History informs us about the first method the parties developed in order to pick their presidential candidates. The use of discretionary fiscal policy is hampered by three time lags: Recognition lag. The three fiscal policy lags are the recognition lag, the implementation lag, & the impact lag. custom paper from our expert writers, Time Lags in Discretionary Fiscal Policy. Flashcards. We use cookies to give you the best experience possible. There are several time lags involved when fiscal policy is applied. Given the uncertainties over interest rate effects, time lags, temporary and permanent policies, and unpredictable political behavior, many economists and knowledgeable policymakers had concluded by the mid-1990s that discretionary fiscal policy was a blunt instrument, more like a club than a scalpel. The three fiscal policy lags are the recognition lag, the implementation lag, & the impact lag. Why do long lags make discretionary policy less effective? Therefore, a discretionary fiscal policy will stabilize the economy most when surpluses are incurred during inflation and deficits during recessions. on. Fiscal policy is most effective when policy lags are _____. Let Professional Writer Help You, 6000 Fairview Road, SouthPark Towers, Suite 1200, Charlotte, NC 28210, USA. However, the implementation lag in fiscal policy is likely to be more pronounced, while the impact lag is likely to be less pronounced. 1. 38. Discretionary fiscal policy involves the same kind of lags as monetary policy. Forecasting a forthcoming recession or boom is a highly imperfect science. In response to a deep recession (GDP fell 6%) the government cut VAT in a bid to boost consumer spending. 39. 39. Stanford University, Retrieved September 15, 2007 from http://www.stanford.edu/~johntayl/Papers/Reassessing+Revised.pdf, Cooper, K. (2002). At its best, discretionary fiscal policy should work in alignment with monetary policy enacted by the Federal Reserve. jbanton14. Fiscal policy has traditionally been related to the use of taxation and public expenditure to influence economic activities of a country. - 7065719 1. shtml) Either, time lags are sensitive variables in defining the scope of economic stability. Spending plans are only set once a year. In general, it takes anywhere from six to twelve months after implementing policy changes to experience major improvements. political economy point of view, long decision and implementation lags associated with discretionary fiscal policy are often mentioned as arguments why such policies might be ineffective. The federal government’s headquarters is centered in. Expert Answer 100% (1 rating) True. However, a problem mounts on when other various economic shocks which cause time differential hits the economy leading to subjective sub-optimal controls by the discretionary fiscal policies. Are desirable, because they provide time for the economy to adjust to the policy. PhDessay is an educational resource where over 1,000,000 free essays are collected. Fiscal and monetary authorities have the same goals in mind - a stable but growing economy - but they go about it in different ways. Fiscal policy refers to the use of government spending and tax policies to influence macroeconomic conditions, including aggregate demand, employment, inflation and economic growth. Action lag. Get Your Custom Essay That occurs after a rise in unemployment, for example, which is reported after a trend has already occurred. By continuing we’ll assume you’re on board with our cookie policy, Your Deadline is Too Short? Since, the status of the economy is difficult to access in terms of its length/p and the states of capacity and economic implication, the use of discretionary fiscal policy would therefore become difficult. 2. Add Solution to Cart Remove from Cart. can use them for free to gain inspiration and new creative ideas for their writing assignments. Are undesirable, because discretionary fiscal policy is ineffective. Either, economic recession is purely a bad state which would even compromise economic stability. Fiscal policy is the use of taxes, government transfers, or government purchases of goods and services to shift the aggregate demand curve. This is because when the data are collected and fiscal policies are put in place, the progress of investment within this period could well be depending primarily on prior investment that are expected to boom during the period where the discretionary fiscal is still in the process of being implemented. The Federal Reserve Act sets the goals of monetary policy, which strives to maximize employment levels, stabilize prices and maintain moderate levels of long-term rates of interest. STUDY. The burning question in this context is related with the timing of the fiscal measures. Thursday, August 15, 2019. ... Fiscal policy lag effect. Such a reduction may lower the rise in the general price level. This is because discretionary fiscal policy is an inexact science with congress having different agendas trying to work out with the President using present data that are already in effect and taking time to generate a corrective action for the present conditions. For example “temporary investment incentives may work in the opposite direction strengthening the immediate response but also, potentially, weakening prior investment” (Auerbach, 2002). In 2009, the government pursued expansionary fiscal policy. Taylor,J. Time lags. 3 Galiet al 2003; Afonso, Alnello and Furceri, 2010; Afonso, 2008; Afonso and Gonzalez-Alegre, 2008; Hallerberg and Strauch al 2002). There is a time delay between the development of an economic issue requiring expansionary or contractionary fiscal policy and a government's recognition and institution of a solution to the problem. Spell. Let us focus first on a condition where discretionary fiscal policies would end up useless or delayed as the chain of events within the time lag would make it inappropriate. Fiscal policy, every economist should know, is characterized by its lagged effect. Group of answer choices. These time lags can be grouped into three different phases, the recognition time lag, the implementation time lag, and the response time lag. There is also a delay in implementing any changes to spending patterns. destabilize real GDP because by the time a policy has begun to have its effects, the economy might already be recovering and the policy action might push real GDP up faster than intended, thereby making real GDP less stable. Fiscal policy in the form of tax rates and government expenditure influence business cycles and affect greatly on the length and variability of the lag. "Discretionary policy" can refer to decision making in both monetary policy and fiscal policy. Previous question Next question Get more help from Chegg. argued that discretionary fiscal policy is not an effective stabilisation toolEspecially from a . For this reason, he argued the case for general rules rather than discretionary policy. B) Monetary policy lag effect. President Bush announced a program of tax rebates. The length of time needed to become aware of an economic problem is called the _____ lag. cbo. In the end, this document does not discourage the use of discretionary fiscal policy but puts caution that discretionary fiscal policies should be well thought off, assessing the possible future risk before it is being implemented. This is just a sample. $2.19. Therefore, a discretionary fiscal policy will stabilize the economy most when surpluses are incurred during inflation and deficits during recessions. Recognition, … A business-cycle contraction that hits the economy on January 1st cannot be correct with fiscal policy by January 2nd. The events that occurred due to sentiments and fear where overlooked while the effects of the discretionary policy were not yet in effect. The framer’s method in 1787 was that. Discretionary fiscal policy refers to government policy that alters government spending or taxes. Generally, time lags may cause preferential economic instability where such tools used to overcome their effects become negatively implicating. Expansionary fiscal policy can help to end recessions and contractionary fiscal policy can help to reduce inflation. False 40. 2 DISCRETIONARY FISCAL POLICY Deliberate changes in government spending and taxing to influence the economy COUNTER-CYCLIC POLICY IS PREFERRED: When the economy is contracting, we should try to stimulate the economy to reduce unemployment. An advantage of automatic stabilizers over discretionary fiscal policy is that? The time it takes after a problem is recognized to choose & enact a fiscal policy in response is the _____ lag. In this lesson summary review and remind yourself of the key terms, calculations, and graphs related to fiscal policy. $2.19. Discretionary fiscal policy involves the same kind of lags as monetary policy. According to Auerbach (2002), “the impact of policy on current activity depends on expectations about the future”. When congress or the president proposes fiscal policies to correct unhealthy economic conditions, the time it takes from the recognition of the problem, to the proposal of a solution, to the implementation, up to the time that the effects would yield some result normally takes a considerable amount of time. Diagram showing the effect of tight fiscal policy. The most vital aspect of a public budget is its use as an instrument to manage an economy (Omitogun & Ayinla, 2007). PLAY. When there is a time lag of monetary and fiscal policies then the economy will be in depression. This method was the congressional caucus. It is because of these lags that Friedman argues that discretionary public policy will often be destabilizing. There are 3 types of lags that are associated with a fiscal policy : recognition lag, decision lag and implem view the full answer. Sometimes, when the economy is expanding too rapidly, we try to dampen the economy a bit to reduce the threat of inflation. With these three time lags adding up together, we can say that when the government generates one proposal to ease out economic health, one must foresee that within the … There is usually a time lag between when a change in policy is needed and when its need is widely recognized by policymakers. 25 Fiscal Policy and TIming Lags. https://phdessay.com/discretionary-fiscal-policy/, Republican controlled House of Representatives – Congress Essay. A discretionary fiscal policy is the level of legislative parameters which are used as action policies for providing stimulus for the effect of control of economic recession. (2003). This method was the congressional caucus. Given the uncertainties over interest rate effects, time lags, temporary and permanent policies, and unpredictable political behavior, many economists and knowledgeable policymakers had concluded by the mid-1990s that discretionary fiscal policy was a blunt instrument, more like a club than a scalpel. Discretionary Fiscal Policy: Summing Up. These time lags can be grouped into three different phases, the recognition time lag, the implementation time lag, and the response time lag. Time Lags in Discretionary Fiscal Policy TRUE or FALSE: Because of the lags inherent to discretionary fiscal policy, such policy is as likely to be pro-cyclical as it is to be counter-cyclical. It takes some time for policy makers to realize that a recessionary or an inflationary gap exists—the recognition lag. on. Policy Implications of Lags in Monetary Policy: The existence of long and variable lags in the effects of monetary changes has led Friedman to conclude that discretionary countercyclical policy aimed at economic stabilisation may be destabilising. Fiscal policy, on the other hand, determines the way in which the central government earns money through taxation and how it spends money.To assist … The lags in discretionary fiscal policy. Similarly, contractionary policy may “crowd in” additional … Scholars So within the period of the time lag, the conditions may alter in such a way that when the discretionary policy is already in place it is no longer applicable, or it could make the situation worst where the change of conditions within the time lag would work in such a way that it makes things worst. Retrieved September 15, 2007 from http://www.kansascityfed.org/publicat/Sympos/2002/pdf/S02auerbach.pdf, Remember. In the late October of that same year, he added additional stimulus that includes, “reduced taxes for low- and moderate-income households, accelerating the tax cuts passed in 2001, allowing partial expensing on business capital equipment, eliminating the corporate alternative minimum tax, and extending unemployment benefits” (Cooper, 2002). Learn. The lags in discretionary fiscal policy Group of answer choices Are desirable, because they provide time for the economy to adjust to the policy Are desirable, because they result in eliminating the gaps Expansionary fiscal policy can help to end recessions and contractionary fiscal policy can help to reduce inflation. Does the Current Electoral Process Result in the best Candidate for President. One example is President George Bush response to the September 11 attack where he immediately requested $40 billion in emergency supplemental appropriations. Time Lags in Discretionary Fiscal Policy. Tight fiscal policy will tend to cause an improvement in the government budget deficit. Monetary Policy. Discretionary Fiscal Policy: Summing Up. More or less zero. 2. A discretionary fiscal policy is the level of legislative parameters which are used as action policies for providing stimulus for the effect of control of economic recession. https://phdessay.com/time-lags-in-discretionary-fiscal-policy/. If the government plans to increase spending – this can take a long time to filter into the economy, and it may be too late. There is much less of a time lag for monetary policy than fiscal policy. There are 3 types of lags that are associated with a fiscal policy : recognition lag, decision lag and implem view the full answer. (2016, Aug 22). Policy Lags: During the recent times, there is not much argument about the desirability or otherwise of a discretionary fiscal policy. Does the Current Electoral Process Result in the best Candidate for President? The Federal Reserve Bank of Kansas City. These time lags could actually cause discretionary fiscal policy to.