Goldilocks effect

Why in News

      The RBI has revised the current fiscal year's growth forecast to 7%, citing recovery in domestic demand, global economic improvement, and vaccination progress. However, inflationary risks, driven by supply-side factors, pose a threat to the Goldilocks Effect, with the RBI warning that inflation may persist above its target range of 2-6%.

The Goldilocks Effect is a situation where the economy is neither too hot nor too cold, but just right for optimal growth and low inflation.

Goldilocks effect

•     The Goldilocks effect refers to a situation in which a balance or middle ground is considered ideal or optimal.

•     The Goldilocks effect is often used to describe situations where something is neither too much nor too little, but just right for a particular purpose or desired outcome. This concept is applied in various fields such as science, economics, technology, and environmental studies.