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 engine starts to overheat and the cooling fan isn't turning, follow these steps:
Carbon building up around the glow plug increases the chance that the plug will overheat and burn out.
The transmitter overheats and the OVERHEAT lamp comes on and stays on.