What is a Hard Landing?

A Hard landing is an economic concept that refers to a shift or downward turn of an economy that has rapidly experienced growth previously. This, in fact, is the government's attempt to control inflation.

How is the term Hard Landing used in Economics?

A hard landing is coined from the aviation industry as this is defined as a high-speed landing of an airplane. This, in turn, defines a buoyant economy running to an abrupt downward shift in economic growth as a result of monetary policy. In recent times, as a result of recessions, the Federal Reserve has increased interest rates at several points.

China Example

China has experienced this downward shift (Hard landing), after years of high Gross Domestic Product growth rates. Often times, an increased level of debt results to this downturn. In late 2015, Socit Gnrale opines a Chinese hard landing at 30% judging from the devaluation of the yuan and the number of market shares. Later, trade volumes recovered and currency markets resume to normal. A Chinese recession would drastically affect manufacturers and leave a negative effect globally.

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• Discretionary Fiscal Policy
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• Economic Cycle or Business Cycle
• Business Cycle Indicator
• Peak and Trough
• Recession and Depression
• Hard Landing vs Soft Landing
• Economic Bubble
• Boom and Bust Cycle
• Great Depression
• Baby Boomer Age Wave Theory

• Skyscrapper Effect (Economics)
• V-Shaped Recovery
• W-Shaped Recovery
• U-Shaped Recovery
• Kondratieff Wave Cycle
• Contagion
• Feedback Rule Policy
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• CNN Effect
• Bureau of Economic Analysis
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• American Recover and Reinvestment Act
• Abenomics
• Emergency Economic Stabilization Act of 2008
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• Real Economic Growth Rate
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• Stagnation
• Neoclassical Growth Theory
• Exogenous Growth Theory
• Endogenous Growth Theory
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• Plutonomy