Goldilocks Economy

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With strong GDP and cooling inflation, the Indian economy could be looking at a Goldilocks moment.


  • 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


  • 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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