Question

Explain how policy lags are more of a problem for fiscal policy compared to monetary policy.

Answer 1

Policy lags are often different for monetary policy than for fiscal policy, particularly in lags within.
There are legislative lags because government decisions aren't instantaneous.
The use of any stabilization policy is delayed between the occurrence of an economic issue, such as a recession of the business cycle or the emergence of inflation, and the full effect of the policy to fix the problem

Fiscal policy and, of course, changes in government spending that directly affect aggregate demand affect revenue faster than monetary policy. While fiscal policy has a shorter external lag, it has a significantly longer delay within it. Fiscal policy has a shorter external lag, despite having a greater gap within than monetary policy.
Changes in government spending are having an immediate effect on economic production. Monetary policy influences consumer spending by changing the money supply and interest rate, which is gradually reacting to such a shift.

The long slump in fiscal policy makes stabilization less useful and means that fiscal policy continues to be used relatively infrequently to seek to stabilize the economy