In aviation, a soft landing happens when the aircraft comes back to earth intact. Conversely, a hard landing occurs when the plane returns to earth, unfortunately, not unscathed. In the economic cycle, we know what a 'hard' landing is: it’s a recession. A recession is generally defined as two consecutive quarters of negative GDP growth, although numerous other dynamics factor into a more complete definition. An economic soft landing occurs when the cycle slows without a negative GDP. Soft landings are rare. Exactly how many have there been? That’s debatable. Two clear-cut instances come to mind, one in 1994, and another in 1984.

Read the full blog post by Leon LaBrecque on Forbes.com here: https://www.forbes.com/sites/leonlabrecque/2019/05/28/soft-landings-can-the-fed-nail-one/#6b5944c61875

 

View Leon LaBrecque's Forbes contributor profile and other blog posts here: https://www.forbes.com/sites/leonlabrecque/

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