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Policy-makers have long aspired to stablize the economy around a targeted path. In reality their room for manoeuvre appears to be narrowing. This book explains for what model-inherent reasons policy-makers might want to play safe and investigates how such considerations could be built into the optimal control framework. Dynamic games are put forward as means to meet the Lucas critique on the use of macroeconomic models for policy-making. Analogies with regression analysis and the Arrow-Pratt decision theory are exploited to allow for risk sensitivity. The approach is enlivened by applications to economic planning in the Netherlands. The emphasis is on how to select a core set of targets for stabilization purposes. The book stresses that the policies should lend themselves to regular updating and a smooth transition from one planning interval to the next. It also shows how to reproduce the preferences of the policy-makers.