Goldilocks Economy: Analysis of Economic Conditions and Stages

This essay provides an overview of the Goldilocks economy, defining it as an ideal economic state characterized by moderate growth, low inflation, and low unemployment. The essay explores the conditions that define a Goldilocks economy, including the balance between employment, inflation, and GDP growth. It also discusses the concept of internationalization of emerging markets and how a Goldilocks economy can be beneficial for business expansion. The essay highlights the importance of factors such as low unemployment rates, controlled inflation, and healthy GDP growth for creating an attractive environment for investment. It further examines the stages of the Goldilocks economy, including the business cycle phases of expansion, peak, contraction, recession, and recovery. The essay concludes by emphasizing the benefits of a Goldilocks economy for internationalization and investment, as organizations generate positive returns. Finally, it references the UK's economic state during the 1990s, 2004-2005 and 2017, which was considered to be in the Goldilocks state. The essay's main points include the characteristics of the Goldilocks economy, its impact on investment, and its importance for emerging markets.

Goldilocks debate

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
CONCLUSION....................................................................................................................................3
REFERENCES.....................................................................................................................................4

INTRODUCTION
Goldilocks economy is a type of state of a economy where to call not too hot which
means it is a ideal state for a basic economic system (Aysun, 2018). In this economy is neither
expanding and not contracting by a much large mass in it is warm enough for economic growth
and prevent some negative scenario of reception.
MAIN BODY
There are many different points that are related with the economy and that there must be
a balance between overall employment inflation and growth (Jensen,. and van Kersbergen,
2017). There is greater perspectives that are related with the internationalization process of
emerging market but some of the best perspectives.
The overall process of globalization that is taking place in world economy is leading to
enhancement of the number of studies that is taking place on internationalization of organization
it consists of expansion of the emerging Markets and various multinational corporations that can
lead to attracting of more interest from belong to different business organizations there are many
leading theories that consists of transaction cost perspective ownership internationalization
Framework location and overall knowledge to the development process model all these are based
on certain studies of forms for developed economy and their emphasize the gradual process of
development of knowledge.
It can be said that the best state for a particular economy to expand self to international level is
then when it is at the Goldilocks economy state which means there are certain aspects when a
particular organization is at this stage and if such ideal conditions are present in economy then it
can be said that it is the most right time to expand their business to other international borders.
Such as low unemployment rate, it can be said that the number of people who are working and
willing to work are getting employment (Dronyk‐Trosper, 2017). Then it can be said that current
rate is very low, more number of people were willing to work for and opportunities that they will
get if country is expanding across globe. If there are more opportunities then it can lead to more
opportunities that can be developed for such unemployment segment of society.

Inflation is also another perspective that is measured on the basis of certain quantitative
techniques price index and also another index that is producer price index these are two scenarios
that help in defining the golden economic state with that inflation is describing the overall
purchasing power of the economy of a nation.
Study GDP attractive indicator of Goldilocks economy GDP is an economic measure that
consists of value of different goods and services that are produced in a country it is measure of
the direct indicator of good health of an economy (Clark, 2019). If the GDP growth is lower than
a country's economy can go for recession and down turn on other hand if it is too high then there
can be also situations of increasing prices of products and services that can lead to low lying
down of economic growth rate.
For example: The Goldilocks economy in UK is going through 5 phases as a part of their
business cycle and the stages actually explain the growth and expansion of the peak contraction
recession and recovery. Goldilocks economy is ideal for investing as organizations are growing
and generating more positive returns and stocks are also performing well. After such stages there
are some techniques with the help of price appreciation and evidence that UK created on the
basis of profit returns to the shareholders (Robinson, 2018). Options of inflation there are cold
higher value. Where is the GDP very fast then inflation can also be place that can lead to
overheating of economy in this crisis of assets can be overvalued and there can be rising of
interest rates for cooling down the overall economy. The rising interest rates break one of the
major key pillars of Goldilocks economy and usually lead to precursor towards the end.
UK economy at the time of middle in the year 1990 was referred to as goldilocks economy at
that time the situation of economy was at ideal state.
In the year 2004 and 2005 also the Goldilocks term has been used for describing UK economy as
it true at a 4.3% that was highest for that particular point of time. (Ndichu. and Rittenburg,
2016). The year 2017, in the economy was going very fast at a 4% rate unemployment was

ranging between three and four percent that is there was no real inflation Insight. The stage the
Federal Reserve kept the interest rate high to keep inflation and the overall growth at a moderate
level. Overall global economy was Everest at 3% GDP growth at that particular point of time but
UK economy was at 4% and it was again a situation of Goldilocks economy.
There are three major outcomes that have been derived from the above mail discussion:
1) Goldilocks economy describes a state of economy that is ideal and economy is neither
contracting nor expanding by much higher criteria.
2) Goldilocks economy refers to the situation of study economic growth and there is not much
recession so there is growth related to inflation that is to a very high percentage.
3) State of Goldilocks is ideal state for the purpose of making investment as organizations are
generating High positive returns and the stocks of organizations are performing well so it is a
perfect state for a particular country's economy to expand them internally and also outside their
domestic borders.
From the above discussion, it can be said that Goldilocks economy for the purpose of expansion
of the internationalization process of different emerging markets.

CONCLUSION
From the above main discussion it can be said that internationalisation process of emerging
Markets and economics is a very popular phenomena that is taking place across many countries.
The mean aspect is that Goldilocks economy has been considered the idealistic situation where
planned there expansion and present to other different parts of world.

REFERENCES
Books & Journals
Aysun, U., 2018. The effects of global bank competition and presence on local economies: The
Goldilocks principle may not apply to global banking. Economic Modelling, 70, pp.159-
173.
Jensen, C. and van Kersbergen, K., 2017. Goldilocks’ Frankenstein monster: The rise, political
entrenchment and transformation of the Scandinavian welfare states. In The Routledge
Handbook of Scandinavian Politics (pp. 69-79). Routledge.
Dronyk‐Trosper, T., 2017. Searching for goldilocks: The distance‐based capitalization effects of
local public services. Real Estate Economics, 45(3), pp.650-678.
Ndichu, E.G. and Rittenburg, T.L., 2016, March. YOUR GOLDILOCKS IS OUT THERE!
CONSUMER LAY EXPERTISE IN THE DESTIGMATIZATION OF
MISUNDERSTOOD CONSUMPTION PRACTICES. In ROBERT MITTELSTAEDT
DOCTORAL SYMPOSIUM PROCEEDINGS (p. 195).
Robinson, J., 2018. Goldilocks, Aragorn, and the Essence of Property. The Independent
Review, 22(3), pp.403-415.
Clark, R., 2019. The Goldilocks effect: Convergence in national income distributions, 1990–
2015. Social science research, 79, pp.141-159.