price stabilization


Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.

Price Stabilization

The ultimate goal of the steps a central bank takes to reduce inflation. That is, when prices are rising rapidly, the central bank may reduce the amount of money in circulation and/or raise interest rates to bring down the rate at which prices are rising. Price stabilization does not bring prices down to their former levels, but it does reduce the rate at which they rise to a more sustainable level. While this is popular in theory, it is important to note that Federal Reserve chairman Paul Volcker caused a recession in the early 1980s when he raised interest rates to 18% to achieve price stabilization.

price stabilization

See peg, PROBLEM">[removed].
References in periodicals archive ?
Price stabilization was achieved, however, through a complete dollarization of the economy.
The increasingly integrated global financial system also implies that the goal of price stabilization cannot be effectively achieved in isolation without taking into account exchange rates and the policies of other countries.
27, 2014 /PRNewswire/ -- Graphite consultants TRU Group Inc says that the latest China monthly graphite export data supports the idea of some graphite price stabilization.
Andrew LePage, an analyst at MDA DataQuick, said that there might be some price stabilization in the latter part of this year.
He added that the outlets that have signed price stabilization agreements with the Ministry own around 70 per cent of the local retail market.
Zubrod will testify regarding the "The Business Risk Mitigation and Price Stabilization Act.
Prequalificationare invited for Empanelled surveyors to undertake survey, inspection, sampling and analysis of TOOR & URAD alongwith its packing details to be procured by NAFED under Price Stabilization Fund (PSF) Scheme
As for the positive, that supports the market, we might name the oil price stabilization (yesterday EU confirmed introduction of oil embargo against Iran from July 1); Italy does not exclude buying bonds of NKB, rumor says the EU prepared a project of partial transfer of the budget sovereignty by the ones that violated the fiscal discipline to the European authority.
2682, the Business Risk Mitigation and Price Stabilization Act, which would clarify the intent of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
They said that was a sign that more homeowners are feeling confident about the economy and price stabilization, and are more willing to sell their homes to move into a larger, more expensive residence.
Housing affordability is quickly being restored in many markets and the pool of buyers who can afford to purchase homes is increasing at a rate not seen in recent years, setting the stage for home price stabilization.
The Government has taken several measures for increasing the availability of pulses by banning export of pulses, extension of zero import duty on pulses and also import of 5000 tonnes of pulses from Price Stabilization Fund.