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# Systemic Stability

# Definition

The capacity of an economic system to maintain its essential functions and
relationships while adapting to external changes and internal pressures,
preventing collapse or severe dysfunction.

## Source Chapter

Book IV, Chapter 5

## Context

Smith's analysis of bounties and trade restrictions is fundamentally about
maintaining systemic stability while avoiding the artificial instabilities
created by government interventions in natural market processes.

## Economic Domain

General Theory

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