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Goldilocks Economy

   Also found in: Wikipedia 0.02 sec.
Goldilocks economy
A term developed in the mid 1990s to describe the positive performance of the economy as "not too hot, not too cold; just right."

Goldilocks Economy
An economy that is performing well enough to avoid a recession and even provide a solid return for investors, but not so well that it causes inflation. The term references the story of Goldilocks and the Three Bears because the economy is neither too cold nor too hot.


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If the Goldilocks Economy is getting a tad overheated, the Fed withdraws money and raises short-term interest rates.
Inflation is way too hot and with housing way too cold, we have the opposite of a Goldilocks economy," said Joel Naroff, president of Naroff Economic Advisors.
After years of believing in the gorgeous beauty that was the Goldilocks economy, financial markets have had a rude awakening.
 
 
 
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