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The concept of "hot in economics" relates to inflation. If you spur people to spend above their productivity prices rise eating away at the gains. Another inte
by conanbatt 8y ago
The concept of "hot in economics" relates to inflation. If you spur people to spend above their productivity prices rise eating away at the gains.
Another interpretation of "hot" is the over-utilization of capital. When you over-utilize capital, its productivity increases are short-termed because the capital has to be refurnished which means in the future you will have a slump.
In economics, there is a proverbial equilibrium that all situations tend to go to: forcing it to move around often has more negative consequences than positive ones.