Financial

Goldilocks economy

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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."
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive
While the rest of the world is facing grim prospects, the Philippines has a goldilocks economy,' said economist Bernardo Villegas of the University of Asia and the Pacific (UA and P).
Instead, we're seeing what some are calling a "Goldilocks economy" where growth has been solid, yet not strong enough to raise inflation and interest rates.
The surge in productivity to o the the strongest rate since Q3 2014 will be welcome news for the Fed and again reflects a Goldilocks economy with little pressure from wages, though policymakers would like to see some pick up in wages and prices.
Today, he is benefitting from a Goldilocks economy that is about as good as it can get.
as part of an integrated global economy.<br />But for matters within the Federal Reserve's power, he said he thinks the country remains on the right track.<br />"We're just trying to maintain what I think of asa 'Goldilocks economy,' with inflation around 2 percent, good increases in wages and a very strong labor market," he said.<br />[divider]<br />Related:<br /> Fed raises key rate, foresees 2 more hikes<br /> Fed at odds with itself as it eases bank rules and raises rates<br />
"Since last autumn, investors had been betting on the goldilocks economy -- solid economic expansion, improving corporate earnings and stable inflation.
As a result, the return of a Goldilocks economy seems like a most unlikely scenario.
And when the faceless men told us that the world is running fine under their excellent stewardship (the Goldilocks economy, the Great Moderation, and the miracle of Europa), maybe we should have been a touch more suspicious.
If the Goldilocks Economy is getting a tad overheated, the Fed withdraws money and raises short-term interest rates.
The Goldilocks economy of the past six months - not too hot, not too cold - bolstered the bottom lines of most investors, a scenario that was less than certain a year ago when the prospect of high gas prices, natural disasters and rising interest rates prompted many to suggest 2006 might mark the end of the bull market.
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