Overheating

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Overheating

An economy that is growing very quickly, with the risk of high inflation.

Overheating

Describing an economy that is growing too fast or otherwise unsustainably. Overheating economies tend to crash, experience high inflation, or both. The inflation occurs when the economy's producers are unable to meet demand by expanding production because it is rising too fast. To temper demand, the producers raise prices. Central banks tend to increase interest rates to temper or prevent overheating in domestic economies.
References in periodicals archive ?
The central bank head of Columbia has said that more rate cuts could overheat the economy.
If the cooling fan can't come on, the engine overheats.
Peru central bank president, Julio Velarde, said that he does not expect the economy to overheat even as inflation is increasing in the nation.
Then the blade stops turning freely, letting the engine and transmission overheat.
1 PC maker Hewlett-Packard  has announced that it is expanding a voluntary recall of laptop batteries that tend to overheat and catch fire by 54,000.
Too much carbon around the glow plug increases the chance that the plug will overheat and burn out.
WASHINGTON - A Maine company is recalling about 394,000 electric blankets because a loose plug can overheat and start fires.
Honda said it wanted to examine window switches that can overheat if exposed to liquid, causing smoke or melting or even catch fire.
Less air causes the heater to overheat or to constantly cycle on and off.
Meggitt is providing the fire, overheat detection system for the engines, main landing gear and the auxiliary power unit.
The transmitter overheats and the OVERHEAT lamp comes on and stays on.
On very hot, humid days, it is easy to overheat because the ability to sweat is reduced, and the sweat that is produced cannot evaporate.