A General Presentation - Framework for Stabilization Policy

To explain measures stabilization policy to a wide public, the results of complicated models have to be presented in an as-simple-as-possible framework This paper combines useful concepts for stabilization policy in a graphical presentation that displays any model that is able to produce an IS-curve, the x-u relation, the Taylor Rule and covers factor substitution. With the "golden age" of short-run, medium-term and long-run equlibrium as reference, this framework shows what in a certain state of an economy has to change and in what direction