Stabilization Policy and the Market Economy

Paul J. Dejillas and Neil Frank Ferrer

Stabilization policy plays an important role in achieving the market economy objectives of growth, stability, and social equity.  The experiences of many developing countries in the past, however, indicate that the introduction of various stabilization-policy measures into the market has largely been focused on the growth and stabilizing aspects -- e.g., generating more revenues, ensuring stability in the value of the country's currency, and keeping a sound balance of payments or financial transactions with the rest of the world -- but in the process, beclouding, almost totally ignoring, the social dimension. [Read more] ...