The difference between an orthodox stabilization plan and a heterodox stabilization plan is that the orthodox plan

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The main difference between an orthodox and a heterodox stabilization plan is that the former does not include wage and price controls, while the latter does. Orthodox plans typically focus on reducing inflation by implementing tough monetary and fiscal policies, while heterodox plans prioritize reducing unemployment by increasing government spending and implementing policies that encourage production and consumption. Both types of plans may involve reducing budget deficits, but only heterodox plans are likely to include higher taxes as part of their policy mix. Trade flows are usually reduced in both types of plans, as import restrictions are often used as a tool to reduce inflation or boost domestic production.

The Difference Between an Orthodox Stabilization Plan and a Heterodox