soft landing(redirected from soft-landing)
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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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A situation in which a central bank raises interest rates gradually, but steadily, to curb inflation, while still attempting to keep the economy out of a recession. A hard landing is generally effective at reducing inflation, but it slows down growth. However, soft landings are considered more desirable than allowing inflation to run amok, which could necessitate a hard landing.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.