To begin with, price in the market must be stabilized in order to achieve a short run economic growth, yet question arisen why price stability is so important. Sustaining a stable price is very important as it is the goal of macroeconomics since the changes in price will impact the purchasing power of people, interest rate and exchange rate in the market. For instance, once the price increases in the market or once the inflation occurs, the consumption will be decreased due to lower purchasing power which will discourage the firms to produce less according to law of supply. Not only that, but lower money demand also can increases the interest rate in the banks forcing the firms and households to cut down borrowing money from the banks. Without the financial supports from the commercial banks, the productions of the firms particularly have to be reduced and probably stopped. Combing this phenomenon with the appreciation of domestic currency in account of the higher demand of money, the producers tend not to export their products to the international market. All of these will cause a tremendous problem to the economy resulting from the reduction of output produced inside the firms due to the diminishing of consumption, higher interest and the fluctuation of exchange rate. Consequently, more people will be laid off and unemployment will rise. More significantly, people will have lower income accompany by lower consumption and recession or business fluctuation will emerge. In the event that the recession really occurs, according to John Menard Keynes who is a prominent economist, the government has to take interventions in order to correct these macroeconomics problems, otherwise recession will transform itself into depression or great depression which happened in the United State from 1929 to 1941. Such interventions can be involved with money supply, interest rate and tax policy.