Macroeconomic stability is essential for sustainable growth from "summary" of The Economics of Money, Banking and Financial Markets, eBook, Global Edition by Frederic S. Mishkin
Macroeconomic stability plays a crucial role in fostering sustainable growth in an economy. When an economy experiences stability in key macroeconomic indicators such as inflation, unemployment, and GDP growth, it creates an environment conducive to long-term economic expansion. One of the primary reasons why macroeconomic stability is essential for sustainable growth is its impact on business confidence and investment. In a stable macroeconomic environment, businesses are more likely to make long-term investment decisions, which can lead to job creation, increased productivity, and overall economic growth. On the other hand, macroeconomic instability, such as high inflation or unpredictable economic conditions, can deter businesses from investing, leading to lower econom...
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