Stabiliseringspolitik

Stabiliseringspolitik, or stabilisation policy, refers to the set of macroeconomic measures designed to reduce the volatility of economic activity around its trend. Its main purpose is to smooth fluctuations in real output and employment while maintaining price stability over the medium term. Stabilisation policy operates mainly through two channels: monetary policy and fiscal policy, though exchange rate policy is sometimes used in small open economies.

Monetary policy uses instruments such as policy interest rates, reserve requirements, and balance sheet actions to influence aggregate demand and inflation. Lower rates stimulate spending and investment during downturns, while higher rates restrain demand when inflation accelerates. Fiscal policy affects demand through government spending and taxation; automatic stabilisers (progressive taxes, unemployment benefits) offset shocks without new legislation, while discretionary measures can be enacted to boost or contract demand.

In open economies, the effectiveness depends on exchange rate reactions, capital mobility, and the responsiveness of the tradable sector. Policymakers face lags in recognition, implementation, and effect, and must balance objectives of inflation control, unemployment, and debt sustainability. Credibility and policy coordination between fiscal and monetary authorities are crucial for success.

Critics argue that stabilisation policy can be procyclical if mis-timed, raise public debt, crowd out private investment, or exacerbate inflation. The approach is challenged by liquidity traps, the zero lower bound, and supply shocks that require different responses, such as structural reforms or supply-side measures. Overall, stabilisation policy seeks to moderate cycles while preserving long-run growth, within the constraints of a given economy's institutions and constraints.