Goldilocks Balance

Subject : Economy

Concept :

Goldilocks rate/balance are characterized by an economy which is neither too heated (inflationary) nor in recessionary state. i.e. the currency is not too strong or weak in global markets.
It means that economy is in stable state with steady growth rates, low interest rates, low unemployment.
The Goldilock State of economy is said to be ideal for investing as interest rates are lower and if steadily growth is witnessed, bonds and stocks would hold their value in long term and hence provide good returns.
However, too fast pace of growth could lead to inflationary situation and affect investors adversely.
Goldilocks economies are temporary in nature, as seen by the boom and bust cycles.