Stabilization Law

The Stabilization Law aims to keep an economy stable by managing inflation, unemployment, and growth. It involves government policies, such as adjusting taxes and spending or using monetary tools like interest rates, to smooth out economic fluctuations. When the economy overheats with high inflation, the law supports measures to cool it down. Conversely, during a slowdown or recession, it encourages policies to stimulate activity. The goal is to maintain steady growth, low inflation, and employment, helping prevent extreme economic swings that can harm individuals and businesses.