- 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.
- Low unemployment
- Asset price inflation
- Lower market interest rates
- Low inflation
- Steady GDP growth
- 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.