Ensuring price stability

Maintaining price stability

Description

Ensuring price stability involves implementing policies and mechanisms to prevent excessive inflation or deflation, thereby maintaining the purchasing power of money. This strategy includes monitoring economic indicators, adjusting interest rates, and regulating money supply to stabilize prices. Its practical intent is to foster economic predictability, protect consumer and business confidence, and prevent the social and economic disruptions caused by volatile price fluctuations, ensuring a stable environment for sustainable growth and investment.