Financial Glossary what is goldilocks-economy


Goldilocks Economy

An economy whose growth is believed to be neither too 'hot' (i.e. too fast) or too 'cold' (too slow), but just right. The term was coined for the US economy in the mid- to late- 1990s. It is arguably an ideal state as it means the government does not have to use fiscal or monetary devices to artificially stimulate or restrain economic activity.
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