EconLearn
AP MacroeconomicsEconomic History & Events

Soft Landing

A soft landing is when a central bank slows the economy enough to curb inflation without causing a recession.

It requires tightening monetary policy just the right amount — cooling demand and prices while keeping growth positive and unemployment low. A 'hard landing' is when tightening tips the economy into recession.

Related terms

AP® is a trademark registered by the College Board, which is not affiliated with, and does not endorse, EconLearn.