Definition: A Goldilocks economy is a phrase used to connote a desirable level of economic growth without inflation. In the U.S. economy, this is when GDP growth is around 3% and inflation is around 2%. It is called Goldilocks economy because, like the famous porridge, it is neither too hot (inflation) nor too cold (recession).
Examples: Some experts believe that monetary policy has become sophisticated enough to create a Goldilocks economy no matter what fiscal policy does.
