Macroeconomic stability is vital for sustainable economic growth from "summary" of Economics of Money, Banking and Financial Markets, Business School by Frederic S. Mishkin
Macroeconomic stability plays a crucial role in ensuring sustainable economic growth. When an economy is stable, businesses can confidently invest in long-term projects and consumers can make decisions without fear of sudden changes in prices or employment. This stability fosters an environment of predictability and confidence, which are essential ingredients for sustainable growth. One key aspect of macroeconomic stability is price stability. When prices are stable, businesses can plan for the future without worrying about unexpected increases in the cost of goods and services. This predictability allows businesses to make informed decisions about hiring, investing, and expanding, which are all essential for long-term economic growth. Another important aspect of macroeco...
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