Goldilocks scenario
The Goldilocks scenario ( English Goldilocks economy ) describes the perfect middle in the world of business . The growth of the world economy is neither too high nor too low. It is slightly above the long-term average. The inflation is low. This enables central banks to keep interest rates and thus borrowing costs low.
Market watchers and fund managers like to use the goldilocks metaphor to describe a perfect market: moderate growth, moderate inflation, low interest rates. The metaphor goes back to the popular English-speaking fairy tale Goldilocks and the Three Bears by the British poet Robert Southey .
Phases of the goldilocks economy
Many experts describe the US economy in the late 1990s as the Goldilocks economy. At that time, the US economy was able to achieve high economic growth without the accompanying rise in prices, as productivity of the US economy improved due to the development of new technologies such as information technology (IT).
In 2017, the global economy was again in a goldilocks scenario.
Individual evidence
- ↑ economy of gold curls In: Online of 12 May 1999
- ↑ Michael Ferber: Investors in the “Goldilocks scenario” on: Neue Zürcher Zeitung of December 30, 2017
- ↑ Germany is faring like Goldilocks In: Die Welt of April 13, 2017