soft landing

Soft Landing

A term used to describe a rate of economic growth high enough to avoid recession, but slow enough to avoid high inflation.

Notes:

When the economy is growing at strong rate, the Fed will try to engineer a soft landing by raising interest rates enough to slow the economy down without putting it into recession.

Alan Greenspan is a master at the soft landing.

See also: Alan Greenspan, Fed, Hard Currency, Hard Landing, Inflation, Recession

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Soft landing

A term describing a growth rate high enough to keep the economy out of recession, but also slow enough to prevent high inflation and interest rates.

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soft landing

A slowing of economic growth that avoids a recession and the accompanying high unemployment. The Federal Reserve may pursue a restrictive monetary policy to achieve a soft landing when the economy has been expanding at an unsustainable rate.