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 ?
If the cooling fan can't come on, the engine overheats.
After the tent cools, the heater cycles back on and eventually overheats the tent again.
The transmitter overheats and the OVERHEAT lamp comes on and stays on.