Tobin (1980, pp. 46-48) stated: That government policies >i>can>/i> be a source of instability is obvious. â¦ That they are the only source of shocks to an intrinsically stable mechanism is a proposition that could be seriously advanced only by persons with extravagant faith in their own abstract models and with historical amnesia. â¦ We can take some encouragement from the economic performance of the advanced democratic capitalist nations since the Second World War. On this point, Martin Baily has proved once more that a picture is worth a thousand words. His picture â¦ shows how much more stable real output has been in the United States under conscious policies of built-in and discretionary stabilization adopted since 1946 and particularly since 1961.