I’ve heard that term a lot over the past 8 months. What would that even look like?
In: Economics
It would look much like what we are having right now. Generally most economic downturns happen with a bang. As usual central banks raise rates to get inflation under control, but at some point, some systematically important failure happens and you have a rapid cascade of bankruptcies, necessitating need to open up the money taps again all in one go and bail everyone out. That hasn’t happened this time (yet). So presumably, central banks can reduce the rates again gradually until they are back to low level and we are in growth cycle again. That’s the soft landing that is the goal of every single central bank to achieve, might be this time it actually succeeds.
Latest Answers