Soft landing

A "soft landing" in the economy refers to a situation where economic growth slows down, but does not fall into a recession. This is often the desired outcome for policymakers, as it allows them to make adjustments to the economy without causing widespread job losses or other negative effects associated with recessions.

An example of a soft landing in the economy occurred in the United States between the years of 2004 and 2006. During this time, the Federal Reserve raised interest rates to cool down an overheating economy, and as a result, economic growth slowed. However, the economy did not enter a recession, and unemployment remained low. This allowed policymakers to make adjustments to the economy without causing a significant negative impact on the population.