Overheating

overheating
term describing an economy that is expanding so rapidly that economists fear a rise in inflation .

Overheating
An economy that is expanding so quickly that there is concern about inflation rates rising. The Federal Reserve usually tries to slow the economy's pace by tightening the money supply.

Overheating
An economy that is growing very quickly, with the risk of high inflation.
Overissue ...

Overheating
When an economy is growing too fast and its productive CAPACITY cannot keep up with DEMAND. It often boils over into INFLATION.
Overshooting ...

The low-inflation decade that preceded this overheating had given central bankers God-like status. But improved monetary policy had at best a supporting role in the global Goldilocks story. The protagonist was the Eurasian savings glut.

However, the Indian economy has recently shown signs that it may be overheating after years of near double-digit GDP growth.

Booms usually suggest the economy is overheating creating inflationary pressures. Many economic booms have been followed by a bust - economic recession or downturn. Hence the phrase Boom and Bust
Economic Boom of the 1920s ...

We think good companies are more attractive when they are cheap than when they are expensive, so we find fewer opportunities when the market is overheating.

Occurs when an economy that has recorded a period of very rapid growth experiences a severe slowdown, normally due to overheating and an excessive policy response such as substantial credit tightening, a revaluation of the currency, etc.

The expenses of a business that are not attributable directly) the production or sale of goods.
Overheating
An economy that is growing very quickly, with the risk of high inflation.
Overinvestment ...

If an increase in inflation is associated with an 'overheating' economy (gy above its sustainable long-run trend), the explanation is that both rising inflation and a temporary spurt in real growth are effects of a previous increase in money growth.

Since then, it has become a net creditor to the world; it controlled inflation, and avoided an overheating of its economy with tight fiscal and monetary policies during the recent run-up in commodity prices.

Excessive growth in the money supply causes inflation (the public has increased purchasing power due to the monetary injection), while sharp cuts in the money supply can cool off an overheating economy, or even cause a recession.

overheating The economic situation in which rapid growth provokes the fear of a rise in... overissue The situation in which the issuer offers a greater quantity of securities than authorized to offer.

See also: Outsourcing, Saving, Financial risk, Federal reserve board, Optimum