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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.
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.