A soft landing, in economics, is a cyclical downturn that avoids recession.
It describes attempts by the central banks to raise interest rates just enough to stop an economy from overheating and experiencing high inflation, without causing a significant increase in unemployment, or a hard landing.
It may also refer to a sector of the economy that is expected to slow down without crashing.
Governments and central banks often attempt soft landings by fine-tuning fiscal or monetary policy.
The concept was conceived by Alan Greenspan, former chair of the Federal Reserve, who engineered the only true soft landing in U.S. history from 1994 to 1995 when the Fed raised interest rates enough to slow the economy, but not enough to cause an economic contraction.
Soft-landings are met with skepticism but some economists say it amounts to little more than economic mumbo-jumbo.
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