3  BIS Review 5/2000  The worse-case scenario: hard landings The worst-case alternative to a soft landing, to continue the analogy, is often referred to as a hard landing. Despite, or perhaps because of, the recent exceptional performance of the US economy, some see a growing danger of a hard landing. A hard landing might seem like an oxymoron.
Chauncey’s statements went down so well because he unwittingly increased confidence in the economy. Confidence is essential for the functioning of our economy. Confidence in price stability ensures, for example, that incomes policy is not distorted by high inflation expectations.