Soft Landing

DEFINITION of 'Soft Landing'

A term used to describe a rate of economic growth high enough to avoid recession, but slow enough to avoid high inflation. A soft landing is typically defined as an economy that has avoided a strong contraction, often made evident by recessionary events, through government intervention by way of fiscal or monetary policies, in many cases.

BREAKING DOWN 'Soft Landing'

For example, if the U.S. economy is growing at strong rate, the Fed may try to engineer a soft landing by raising interest rates enough to slow the economy down, while being sure not to slow the growth to the point of economic contraction. During the 1990s many economic pundits considered Alan Greenspan, the former chairman of the Federal Reserve Board, as a master of engineering a soft landing.

RELATED TERMS
  1. Hard Landing

    An economic state wherein the economy is slowing down sharply ...
  2. Land Value Tax - LVT

    A tax on the value of a piece of land. Land value tax inherently ...
  3. Soft Patch

    A period of economic slowdown amid a larger trend of economic ...
  4. Land

    Property or real estate, not including buildings or equipment, ...
  5. Land Flip

    A fraudulent practice in the real estate business of selling ...
  6. Soft Sell

    Advertising and sales practices denoted by subtle language and ...
Related Articles
  1. Managing Wealth

    How to Keep a Land Investment From Going Bust

    Investing in land can yield big returns. But investors should consider their goals, as well as the following details, to make the deal a success.
  2. Personal Finance

    Uncover The Next Real Estate Hot Spot

    Real estate land speculation is a way to get in on a hot investment before a boom hits.
  3. Managing Wealth

    There Are More Ways To Invest In Land Than You Think

    You don't have to have a huge amount of capital to invest in land. You have many other options, including land-related ETFs and ETNs.
  4. Personal Finance

    What To Do When The Government Wants Your Land

    Find out how the government evaluates your land, what your options are and how to get the most from it.
  5. Managing Wealth

    Tips For Recession-Proofing Your Portfolio

    Find out what to do when the sun sets on a burgeoning market.
  6. Managing Wealth

    Alan Greenspan: 19 Years In The Federal Reserve

    Follow the economic glories and bumbles in the career of the previous Fed chair.
  7. Markets

    A Look At Fiscal And Monetary Policy

    Fiscal and monetary policies provide our government and the Federal Reserve with two powerful tools to regulate the economy.
  8. ETFs & Mutual Funds

    Defined Ranges In Soft Commodities Present Opportunities

    Based on the defined ranges shown on the charts of several soft commodities, now could be the time to watch this group for a reversal.
  9. Markets

    How The Federal Reserve Was Formed

    Find out how this institution has stabilized the U.S. economy during economic downturn.
  10. Markets

    The Difference Between Hard Money And Soft Money

    At their most basic level, hard money and soft money are terms that describe coins and paper money. But in the U.S., they also refer to political contributions.
RELATED FAQS
  1. What is a growth recession?

    A growth recession is an instance in which an economy grows at such a slow pace that it creates net unemployment, meaning ... Read Answer >>
  2. What's the difference between monetary policy and fiscal policy?

    Learn how monetary policy refers to bank actions to control interest rates and money supply, while fiscal policy refers to ... Read Answer >>
  3. What impact does economics have on government policy?

    Learn about the impact of economic conditions on government policy and understand how governments engineer economic conditions ... Read Answer >>
  4. Why would the Federal Reserve change the reserve ratio?

    Understand the Federal Reserve's monetary policy and the tools it uses to change that monetary policy. Learn about the reserve ... Read Answer >>
  5. Do lower interest rates increase investment spending?

    Learn how the Federal Reserve Board uses monetary policy and the federal funds rate to influence long-term interest rates ... Read Answer >>
  6. What happens if interest rates increase too quickly?

    Learn about what happens if interest rates rise too fast and understand what goes into the Fed’s decision to adjust interest ... Read Answer >>
Hot Definitions
  1. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  2. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  3. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  4. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  5. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
  6. Security

    A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship ...
Trading Center