What Is Price Stability?

Price stability refers to the stability of the overall price level. It is a macroeconomic concept.

Price stability

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Price stability refers to the stability of the overall price level. It is a macroeconomic concept.
Chinese name
Price stability
Category
Proper noun
Object
Total price level
Features
Macroeconomic concept
Basic definition
Price index is generally used to indicate changes in general price levels. Price index is an index based on the price level of a certain commodity. A simple percentage time series can be used to indicate the direction and degree of change in price levels in different periods.
Price stability has become the goal of macroeconomic policies because inflation has an adverse effect on the economy. In order to control the impact of inflation on the economy, Western countries have adopted price stability as another goal of macroeconomic policies. It is worth noting that price stability does not mean that the price of each commodity is fixed, but that the price index is relatively stable, that is, there is no inflation.

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