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Investments glossary

Hard Landing


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Quotes of the day:

I\'m in favor of legalizing drugs. According to my values system, if people want to kill themselves, they have every right to do so. Most of the harm that comes from drugs is because they are illegal.

— Milton Friedman

A hard landing refers to a marked economic slowdown or downturn following a period of rapid growth. The term hard landing comes from aviation, where it refers to the kind of high-speed landing that – while not an actual crash – is a source of stress as well as potential damage and injury. The metaphor is used for high-flying economies that run into a sudden, sharp check on their growth, such as a monetary policy intervention meant to curb inflation. Economies that experience a hard landing often slip into a stagnant period or even recession.

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