Economic stability

Economic stability

Economic stability refers to an absence of excessive fluctuations in the macroeconomy. [ [http://www.imf.org/External/np/exr/facts/globstab.htm 'How the IMF Promotes Global Economic Stability'] ] An economy with fairly constant output growth and low and stable inflation would be considered economically stable. An economy with frequent large recessions, a pronounced business cycle, very high or variable inflation, or frequent financial crises would be considered economically unstable.

References

ee also

*Business cycle
*Financial crisis
*Monetary policy
*Fiscal policy
*Automatic stabilizer
*Stability and Growth Pact


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