What Is a Soft Landing in Economy?
A soft landing in the economy refers to a scenario where economic growth slows down but avoids a recession. This concept is particularly relevant during periods of high economic growth that have the potential to overheat the economy, leading to high inflation. The goal of a soft landing is to bring the economy to a sustainable growth rate without triggering a significant downturn or recession. Policymakers, especially central banks, aim for a soft landing through careful adjustments to interest rates and other monetary policies to manage inflation and stabilize the economy.
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