The Soft Landing Illusion and the Reality of 2026 Economics

The Soft Landing Illusion and the Reality of 2026 Economics

Illusion and Reality in the "Soft Landing" of the Global Economy.. Persistent Inflation and Rising Interest Rates  The question that has preoccupied policymakers and economic analysts alike in recent months has been: Will the global economy be able to achieve a so-called "soft landing"—that is, a reduction in inflation rates without plunging the economy into a deep recession? Until recently, there seemed to be cautious optimism that major economies such as the United States and the Eurozone could succeed in this difficult maneuver, driven by a strong labor market and continued consumer spending. However, in-depth academic analysis of current data suggests that the journey toward price stability is far from over, and that the risk of recession remains inherent in the structure of the economy. The crux of this analysis lies in the difference between "transient" inflation, which stems from supply chain disruptions, and "structural" inflation, which i…