price stability


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Related to price stability: economic growth, full employment

Price Stability

The state in which a security or product's price changes fairly little in the face of increased or decreased demand. Price stability generally refers to securities with comparatively large number of shares outstanding; a large order to buy or sell is likely to affect the price less strongly than a similar order for a company with fewer shares outstanding. In other products, price stability is largely based on whether a given product is considered a necessity or a luxury. A "necessary" product is likely to be more stable.

price stability

the maintenance of an unchanged general level of prices over time in an economy. Price stability, especially the avoidance of rising prices (INFLATION), is one of the main objectives of MACROECONOMIC POLICY. See INTERNAL EXTERNAL BALANCE MODEL.
References in periodicals archive ?
Finally, a firm commitment to price stability is the best contribution monetary policy can make toward resolving the challenges posed by external account imbalances.
When a central bank has achieved a reputation for price stability, deviations like these do little to damage credibility.
When the Federal Reserve was founded in 1913, the Federal Reserve Act made no mention of price stability and its mandate was rather diffuse.
While this general concept of price stability finds wide acceptance, opinions can differ substantially on how to give this notion of price stability precise numerical content.
We have delivered price stability over the first twelve, thirteen years of the euro
The central bank is supposed to maintain economic and price stability instead of price stability alone, Wijewardana said.
Minister Fawzi said the government's policy of price stability depends on the supply and demand.
Yilmaz said Turkish economy made very big sacrifices to reach a price stability, however the price stability could not be provided fully despite the achievements.
98 percent, Trichet said, adding that was in the line with the ECB's definition of price stability.
We are there to deliver price stability and price stability in the medium term is a crucial element in activating confidence," he said.
He stated that ECB policy was "geared" towards price stability and that such measures would also lead to financial stability as a whole.
It is against this ominous picture that the Central Bank of Nigeria (CBN)'s plan to achieve price stability in 2009 is largely seen as a futile paper exercise, given the federal government's poor track record in targeting inflation.