Countercyclical financing

The primary objectives of safety nets in times of crisis are to protect incomes and avoid irreversible losses of physical assets and human capital and to help maintain political consensus around the policies needed to resolve the crisis. Permanent and appropriately financed programs can also act as automatic fiscal stabilizers, although programs with permanency, appropriate finance, and guaranteed countercyclical finance are rare (see chapter 3, section 3). 

Countercyclical financing. Cases where funding for a program increases when gross domestic product decreases and vice versa. 

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