# Soft Landing

*Macro & Economy — Finicade finance glossary*

A soft landing is a central bank slowing an overheating economy enough to bring inflation down without causing a recession. It is genuinely rare, because policy acts with long and variable lags and the tool is blunt. The 1994–95 US tightening is the usual example of success; most other episodes ended in the hard landing of rising unemployment, which is the trade-off the Phillips curve describes.

**Also known as:** soft landing scenario, hard landing

**Related terms:** [Recession](https://finicade.com/glossary/recession), [Monetary Policy](https://finicade.com/glossary/monetary-policy), [Inflation](https://finicade.com/glossary/inflation), [Output Gap](https://finicade.com/glossary/output-gap), [Unemployment Rate](https://finicade.com/glossary/unemployment-rate)

Source: https://finicade.com/glossary/soft-landing