goldilocks

Goldilocks

An economic term that refers to an ideal situation in which there is no price increase even when the economy is achieving high growth.

There is a British folk tale called ‘Goldilocks and the Three Bears.’ One day, a girl with golden hair, Goldilocks, ends up eating the porridge that the bears in the forest had deliciously prepared. The girl enjoys the porridge that is neither too hot nor too cold, and English speakers call a state of balance ‘Goldilocks.’

American media called the economy of the 1990s the ‘Goldilocks Economy.’ It means that the ideal balance of high growth - low unemployment - low inflation was maintained.

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Topics: Policy Mix
Category: Wiki/Economy