Hard landing (economics)

Hard landing (economics)

A hard landing in the business cycle is an economy rapidly shifting from growth to slow-growth to flat as it approaches a recession, usually caused by government attempts to slow down inflation. [ [http://www.investopedia.com/terms/h/hardlanding.asp Hard Landing] , investopedia.com] It is distinguished from a "soft landing", in which an economy's growth rate slows enough to control inflation, but remains high enough to avoid recession. [ [http://www.investopedia.com/terms/s/softlanding.asp Soft Landing] , investopedia.com] The criteria for distinguishing between a "hard" and "soft" landing are numerous and subjective.

The terms hard and soft landing can also be used to describe market price or value decreases, with a "soft", slow and controlled decrease generally considered more desirable than a "hard", rapid and unpredictable crash in value.

In the United States, modern recessions and hard and soft landings follow from Federal Reserve tightening cycles, in which the Federal funds rate is increased over several consecutive moves. [http://bigpicture.typepad.com/comments/2006/09/whither_goldilo.html Whither Goldilocks?] , The Big Picture, September 22, 2006 | Sources:Business Outlook Survey, Federal Reserve Bank of PhiladelphiaSeptember 2006, http://www.phil.frb.org/files/bos/bos0906.html | U.S. LEADING ECONOMIC INDICATORS, The Conference Board U.S. Business Cycle Indicators, AUGUST 2006, http://www.econbrowser.com/archives/2006/09/can_it_be_that.html]

ee also

*Soft landing
*Recession
*Business cycle

References


Wikimedia Foundation. 2010.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • hard landing — ➔ landing * * * hard landing UK US noun [C] ECONOMICS, FINANCE ► a sudden, big decrease in economic activity and in the money available for loans following a period of economic growth. A hard landing is usually the result of a central bank… …   Financial and business terms

  • landing — land‧ing [ˈlændɪŋ] noun [countable, uncountable] 1. when a plane lands: • Takeoffs and landings at 40 airports will be restricted, the agency says. 2. TRANSPORT when goods are taken off an aircraft or boat and put onto land: • Commercial landings …   Financial and business terms

  • Soft landing — A soft landing in the business cycle is the process of an economy shifting from growth to slow growth to potentially flat, as it approaches but avoids a recession. It is usually caused by government attempts to slow down inflation. [… …   Wikipedia

  • soft landing — 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. Bloomberg Financial Dictionary * * * soft landing soft landing ➔ landing * * * soft landing UK US …   Financial and business terms

  • United States housing bubble — The United States housing bubble is an economic bubble in many parts of the United States housing market including areas of California, Florida, New York, Michigan, the Northeast Corridor, and the Southwest markets. On a national level, housing… …   Wikipedia

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • United States housing market correction — A United States housing market correction is a market correction or bubble bursting of a United States housing bubble; the most recent one started in 2005.A real estate bubble is a type of economic bubble that occurs periodically in local or… …   Wikipedia

  • Airport — For other uses, see Airport (disambiguation). Pulkovo Airport in Saint Petersburg, Russia (2005) …   Wikipedia

  • Neil Armstrong — For other uses, see Neil Armstrong (disambiguation) …   Wikipedia

  • Rocket — This article is about vehicles powered by rocket engines. For other uses, see Rocket (disambiguation). A Soyuz U, at Baikonur Site 1/5 A rocket is a missile, spacecraft, aircraft or other vehicle which obtains thrust from a rocket engi …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”