6. Economic theory indicates that there are limitations on the expected effectiveness of discretionary fiscal policy as a stabilization tool. There is often a lag between the time when a policy change is needed and the time when legislative authority is granted. Even after a fiscal policy change has been instituted, it may take time for the policy to exert its major effects. If an economic slump is localized to a specific geographical area or labor force group, a generalized fiscal stimulus may be relatively ineffective. Each of these factors complicates the effective use of countercyclical fiscal policy.