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Define the term - Inaction and crises
We know that the standard social planner does not show and delay or have tendency of inaction and adopts a policy as soon as it is proved as raising social welfare. In reality, however, changes as such in society, are slow and beliefs remain 'sticky' for a longer time. Hence, whenever economic reforms are implemented they may be delayed due to political constraints. It is due to the fact that reforms imply directly that earlier policies have been inferior and that earlier policy makers are held responsible for continuation of such polices and held responsible for the past poor economic performance of the country.
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