Overheating
From ACT Wiki
Economics.
Overheating describes the situation in an economy when production cannot keep pace with rising demand, leading to the risks of high inflation and of later recession.
- US economy remains overheated - IMF
- "Pierre-Olivier Gourinchas, the IMF’s economic counsellor, is cautious about cutting interest rates.
- Gourinchas adds that the resilient global economy also masks stark divergence across countries. 'The strong recent performance of the United States reflects robust productivity and employment growth, but also strong demand in an economy that remains overheated,' he says. 'This calls for a cautious and gradual approach to easing by the Federal Reserve.'
- Fight against inflation not yet won, as growth steadies, IMF warns - The Treasurer - Issue 2, 2024, p23.
- Not overheating yet
- "While the building global economic upswing may eventually gain so much momentum that the risk of overheating becomes more pronounced, we are not there yet.
- Faster productivity growth helps delay this process."
- The Treasurer magazine, April 2018, p15 - Kallum Pickering, senior UK economist, Berenberg Bank.
