Economic Stability Controls

Definition ∞ Economic stability controls are measures implemented by governments or central banks to mitigate economic volatility and maintain financial equilibrium. These controls can include monetary policy adjustments, fiscal policies, and regulatory oversight of financial markets. Their purpose is to prevent extreme fluctuations in inflation, employment, and overall economic activity.
Context ∞ In the context of digital assets, economic stability controls are frequently discussed concerning the potential impact of cryptocurrencies on national economies. Regulators assess whether unbacked digital assets could disrupt traditional financial stability mechanisms. The debate often centers on how central bank digital currencies (CBDCs) might offer new tools for stability management.