This pamphlet was derived from a discussion paper prepared for a Joint Council conference. It was specifically revised for this series to bring an important subject to the attention of students and concerned citizens. Part One defines the problem of economic stabilization and explains the fiscal and monetary measures used to help control the traditional ups and downs in the economy. Also included here is the current and more complex problems of creeping inflation. Part Two reviews the successes and failures of policies since World War II, and explains why institutional changes and built-in automatic safeguards make a 1929-sized crash unlikely. Part Three outlines a number of future stabilization issues confronting policy-making authorities when the Vietnam War ends. The teaching section by D. Bruce Johnstone provides illustrations of learning activities which teachers will find helpful as they translate the economics of stability into meaningful student experiences. A bibliography at the end of Part Three will give the reader additional resources. (Author/SBE)