Economic stability refers to an absence of excessive fluctuations in the macroeconomy. 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

See also

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