Goldilocks Economy
News:
With strong GDP and cooling inflation, the Indian economy could be looking at a Goldilocks moment.
What:
- A Goldilocks economy refers to an ideal state of economy that is neither too hot (controlled inflation) nor too cold (stale growth).
- It refers to the ‘Goldilocks and the Three Bears’ story.
- Features:
- Low unemployment
- Asset price inflation
- Lower market interest rates
- Low inflation
- Steady GDP growth
How:
- The economy becomes warm enough to experience steady economic growth with low chances of a recession.
- It is also cool enough that the inflation numbers are kept within check.
- However, these situations are temporary in nature.
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