stabilization

stabilization definition - business

stabilization

The goal of government fiscal and monetary policy designed to temper business cycles. During a recession, for example, the Federal Reserve reduces short-term interest rates and Congress increases government spending. The opposite actions should be undertaken when the economy is growing at an unsustainable pace.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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