Goldilocks Economy An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to describe the U.S. economy of the mid- to late-1990s - it was "not too hot, not too cold, but just right." Investopedia Says: Everything in the Goldilocks economy is fine until the three bears (or bear market) come home for their porridge! Related Terms: Bear Bear Market Bull Bull Market Business Cycle Fox-Trot Economy Inflation Recession Soft Landing |