price stability


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.