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A soft landing in the business cycle is the process of an economy shifting from growth to slow-growth to potentially flat, as it approaches but avoids a recession. It is usually caused by government attempts to slow down inflation. [1] The criteria for distinguishing between a hard and soft landing are numerous and subjective.
This contrasts with a hard loan, which has to be paid back in an agreed hard currency, usually of a country with a stable, robust economy. [ 2 ] An example of a soft loan is a $2 billion loan by China's Export-Import Bank to Angola in October 2004 to help build infrastructure.
The concept of soft budget constraint is commonly applied to economies in transition. This theory was originally proposed by János Kornai in 1979. It was used to explain the "economic behavior in socialist economies marked by shortage”. [ 2 ]
Hard money loans are also different from so-called soft money loans: Hard money loans are usually secured by physical assets like property and their assessed value in the form of equity.
In macroeconomics, hard currency, safe-haven currency, or strong currency is any globally traded currency that serves as a reliable and stable store of value.Factors contributing to a currency's hard status might include the stability and reliability of the respective state's legal and bureaucratic institutions, level of corruption, long-term stability of its purchasing power, the associated ...
It is distinguished from a soft landing, in which an economy's growth rate slows enough to control inflation, but remains high enough to avoid recession. [1] The criteria for distinguishing between a hard and soft landing are numerous and subjective.
The reverse of Gresham's law, that good money drives out bad money whenever the bad money becomes nearly worthless, has been named "Thiers' law" by economist Peter Bernholz in honor of French politician and historian Adolphe Thiers. [26] "Thiers' Law will only operate later [in the inflation] when the increase of the new flexible exchange rate ...
The legislation stood as a compromise engineered by Senators John Sherman and George Edmunds between hard and soft money advocates. [17] Milton Friedman and Anna J. Schwartz argue that the Resumption Act had mixed effects on actual resumption of specie payments, saying that primary economic product of the Act was that it instilled confidence in ...