Hard Landing Definition - Glossary

Hard Landing is a sharp economic decline post-tight monetary policy, often leading to recession and increased unemployment.

Hard Landing is a scenario where an economy experiences a sudden and severe downturn following a period of monetary tightening. This typically occurs when central banks raise interest rates to combat inflation, but the measures end up cooling the economy too quickly. The rapid slowdown can lead to a recession, characterized by shrinking GDP, rising unemployment, and reduced consumer spending. In the context of financial markets, a hard landing can cause asset prices to plummet, impacting both traditional and crypto markets. This is typically more severe than a "soft landing."