A “hard landing” refers to an abrupt economic slowdown or downturn following a period of high growth. Restrictive monetary policy meant to curb inflation can sometimes lead to a “hard landings,” which occur when an economy slips into a stagnant period of growth or even a recession.
A “hard landing” can be contrasted to a “soft landing,” which is considered to be a more desirable goal for economic policy makers. A “soft landing” occurs when fiscal and monetary policy is reduced in an attempt to curb inflation without sacrificing jobs or inflicting economic pain on the economy.