Three Scary Phrases Economists Use
Article written by guest writer Rin Mitchell
What’s the Latest Development?
The economic slowdown is in response to the fear of the unknown. Due to the problems at the forefront of Europe, China and the United States, economists say investors and employers are not making any major moves at this uncertain point in time. The public has been informed as to what economists have to say about the economic situation, but they use a whole lot of economic jargon. Although a lot of the reports made by economists can be depressing to hear, there are three key phrases used that are pretty frightening—yet the public should be familiar with. They are “fiscal cliff,” “muddle through” and “hard landing.” Since these phrases will be thrown around for months to come, it is good to have an idea of the meaning behind them. First is “fiscal cliff,” which is in reference to the U.S. government’s budget or financial woes. Next up is “muddle through,” it relates to the back and forth debacle as to whether Greece will leave the euro zone and return to the Greek drachma. Due to the debts and “weak banks,” economists are discussing ways to “muddle through” without causing too much economic chaos. Last is “hard landing,” which describes what will happen if China’s economic slowdown turns into a downward spiral.
What’s the Big Idea?
The issues going on in China, the U.S. and Europe are hot topics, and economists are analyzing and predicting every move. The economy in Europe is suffering, the U.S. is still in recovery mode and the bright light in China’s economy is growing dim. These situations are frightening and have led experts to believe the economic suffering will be extended. Three phrases “fiscal cliff,” “muddling through” and “hard landing” will repeatedly be heard in the trending topics. So it is best to be able to understand what all the jargon means.