Nevertheless, a central bank may often experience a substantial recognition lag prior to its becoming clear just what the latest economic figures imply for policy needs. Indeed, even after a central bank implements a policy response, its critics may still argue that it recognized the situation incorrectly.
Despite this, a central bank can often encounter a substantial time gap before grasping how recent economic figures impact policy requirements. Even after a central bank takes action on a policy decision, its critics may argue that it misunderstood the circumstances.