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Hard Landing

What is 'Hard Landing'

An economic state wherein the economy is slowing down sharply or is tipped into outright recession after a period of rapid growth, due to government attempts to rein in inflation. A hard landing may be the undesirable consequence of efforts by a nation's central bank to tighten monetary policy, so as to slow down growth and keep inflation in check. While a soft landing is generally the objective of such tightening measures, a hard landing may be the occasional - and unfortunate - result.

Explaining 'Hard Landing'

For example, China's rapid economic growth in recent years has often given rise to speculation about the possibility of a hard landing, in which the economy slows down from a double-digit rate to a growth pace in the low single digits. This could occur if measures by the Chinese government to tighten monetary policy slow down growth faster than it expects, or would like.


In the United States, a hard landing is the occasional outcome of the Federal Reserve's tightening cycle, during which the federal funds rate is steadily ratcheted higher over a period of many months.


Further Reading


The J-curve, the fire sale, and the hard landing
www.jstor.org [PDF]
… The basic outlines of a hard landing are easy to envision: a sharp fall in the value of the US dollar, a rapid … Source: Bureau of Economic Analysis … Obviously, the scale of the financial flows needed to finance any given current account deficit would fall if net FDI outflows stopped, or …

Global imbalances and financial stabilityGlobal imbalances and financial stability
www.sciencedirect.com [PDF]
… The basic outlines of a hard landing are easy to envision: a sharp fall in the value of the US dollar, a rapid … Source: Bureau of Economic Analysis … Obviously, the scale of the financial flows needed to finance any given current account deficit would fall if net FDI outflows stopped, or …

Global spillovers of a China hard landingGlobal spillovers of a China hard landing
papers.ssrn.com [PDF]
… The basic outlines of a hard landing are easy to envision: a sharp fall in the value of the US dollar, a rapid … Source: Bureau of Economic Analysis … Obviously, the scale of the financial flows needed to finance any given current account deficit would fall if net FDI outflows stopped, or …

A hard landing for the 'New Economy'? Information technology and the United States national system of innovationA hard landing for the 'New Economy'? Information technology and the United States national system of innovation
www.sciencedirect.com [PDF]
… The basic outlines of a hard landing are easy to envision: a sharp fall in the value of the US dollar, a rapid … Source: Bureau of Economic Analysis … Obviously, the scale of the financial flows needed to finance any given current account deficit would fall if net FDI outflows stopped, or …

External contradictions of the Chinese Development Model: export-led growth and the dangers of global economic contractionExternal contradictions of the Chinese Development Model: export-led growth and the dangers of global economic contraction
www.tandfonline.com [PDF]
… The basic outlines of a hard landing are easy to envision: a sharp fall in the value of the US dollar, a rapid … Source: Bureau of Economic Analysis … Obviously, the scale of the financial flows needed to finance any given current account deficit would fall if net FDI outflows stopped, or …

End of the expansion: Soft landing, hard landing, or even crash?End of the expansion: Soft landing, hard landing, or even crash?
www.tandfonline.com [PDF]
… The basic outlines of a hard landing are easy to envision: a sharp fall in the value of the US dollar, a rapid … Source: Bureau of Economic Analysis … Obviously, the scale of the financial flows needed to finance any given current account deficit would fall if net FDI outflows stopped, or …

China's economic hard landing impact on Africa: A scenario analysisChina's economic hard landing impact on Africa: A scenario analysis
scholar.sun.ac.za [PDF]
… The basic outlines of a hard landing are easy to envision: a sharp fall in the value of the US dollar, a rapid … Source: Bureau of Economic Analysis … Obviously, the scale of the financial flows needed to finance any given current account deficit would fall if net FDI outflows stopped, or …

Financial crisis 2008: Entering global recessionFinancial crisis 2008: Entering global recession
www.tandfonline.com [PDF]
… The basic outlines of a hard landing are easy to envision: a sharp fall in the value of the US dollar, a rapid … Source: Bureau of Economic Analysis … Obviously, the scale of the financial flows needed to finance any given current account deficit would fall if net FDI outflows stopped, or …


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