The Goldilocks economy describes an ideal state of the economy where the economy does not expand or contract too much.
The Goldilocks economy is characterized by strong economic growth that prevents a recession, but not so much that inflation rises too much.
The Goldilocks fortune is also ideal for investing because as companies grow and generate positive earnings growth, stocks perform well.
The term “Goldilocks” refers to the well-known children’s fairy tale of the same name, which describes situations that are “just right” between two extremes.
The Goldilocks economy is temporary, as evidenced by boom and bust cycles.
An economist is an expert who studies the relationship between a society’s resources and its production or output, using a number of different indicators to predict future trends.
An absolute advantage is when a manufacturer can provide a greater quantity of a product or service for the same price or the same quantity at a lower price than its competitors.
Animal spirits come from the Latin spiritus animalis: “breath that awakens the human mind.” It was introduced by the British economist John Maynard Keynes in 1936.
Autarky refers to a state of self-sufficiency and is commonly used to describe countries or economies that seek to reduce their dependence on international trade.
Automatic Stabilizers is a permanent government policy that automatically adjusts tax rates and transfers payments in a way that stabilizes income, consumption, and business spending over the business cycle.
The balance of trade (BOT) is the difference between the value of a country’s imports and exports over a given period and is the largest component of a country’s balance of payments (BOP).
“Best Effort” is a legal term that represents the obligation of a party to a contract to take all possible steps to fulfill the terms of the agreement.