Hard Landing


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Hard Landing

A situation in which a central bank raises interest rates significantly to curb inflation and, in doing so, drives the economy into recession. For example, in 1981, the Federal Reserve raised the fed funds rate to 20%, which caused inflation to drop from 13.5% in 1981 to 3.2% in 1983. However, high interest rates led directly to a deep recession in the early 1980s. A hard landing is effective at reducing inflation, but is nonetheless undesirable. As a result, central banks only attempt it when there are no other viable options. See also: Soft Landing.
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In that respect, Chinese policymakers are walking on a tightrope between stimulating the economy to avoid a hard landing and transforming the economy to avoid creating more empty roads and ghost cities," QNB added.
Despite a slowdown in the rate of growth, the possibility of a hard landing appears to be slim, considering the strong growth of China's service industry, continued expansion of investment in infrastructure, and the strength of the Chinese government and central bank to counter future developments," the report said.
Although [a] hard landing and tightening of credit following a crash in the housing market and defaults by real estate developers have a relatively low probability, such a scenario could mean significant erosion in domestic demand and China could experience an economic slow down," said Nariman Behravesh, chief economist of IHS.
19 February 2014 - Growing fears of a hard landing for China's economy have further marginalized emerging market equities according to new survey results from US financial services firm Bnak of America Merrill Lynch (NYSE: BAC).
Marine Corps MV-22 Osprey tilt-rotor aircraft made a hard landing in Nevada on Monday, the Las Vegas Review-Journal reported in its online edition.
Approached for comments, the ISAF media office said: "We can confirm a coalition aircraft conducted a hard landing in northern Afghanistan today.
Syria's Hard Landing How can Western governments help Syria?
Such an outcome should put to rest any remaining doubt about China escaping a hard landing and sailing smoothly through the troubled global waters," Dariusz Kowalczyk of Credit Agricole CIB in Hong Kong said in an email.
The Austrian landed safely, but his capsule suffered a hard landing and required emergency repairs.
Summary: Concern is growing that China's economy could be headed for a hard landing.
The agency then underscored "the risk of a hard landing in major emerging market economies, including China, India and Brazil," followed by "an oil-price supply-side shock resulting from resurfacing geopolitical risks.
A PETROL station owner and an Iraqi adventurer trying to fly from Oregon to Montana in tandem lawn chairs suspended from party balloons made a hard landing after having to abort their flight due to thunderstorms.