Economic history demonstrates clearly that stability is an essential platform for achieving high and sustainable levels of growth and employment. However, economic instability imposes significant costs on the economy and society. To lessen it, setting of an appropriate macroeconomic policy, is essential as a stabilizing force. The powerful influence of the Government borrowing and interest rates on the economy, however, can be destabilizing, if not managed effectively. The evidence suggests that fiscal and monetary policies over the last two cycles have failed to provide the requisite stability. The key task for macroeconomic policy—both monetary and fiscal—is to create a platform of stability to allow people and firms to plan ahead with confidence. In such a backdrop, the present volume is conceived to entice the inquisitive readers to look into the nitty-gritty of the appropriate macroeconomic policies through which real stability can be achieved. A two section approach is employed towards accomplishment of the objective. While the first, examines the pros and cons of implementing the macroeconomic policies the second looks at different countries through which economic stability in them were achieved. It is believed that on going through this book, the readers, comprising mainly of economists, policy makers and bureaucrats will be far more enlightened about the essential role of macroeconomic policies in the achievement of economic stability apart from modifying it.
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