A Goldilocks economy occurs when growth is, like the childhood story, neither too hot or too cold. Too hot of an economy creates inflation; too cold creates a recession.
To create Goldilocks economy there needs to be enough gradual expected growth and enough demand to keep the economy humming. This is not a stagnant balance. Ideally growth over time would range between 2-3 percent, as measured against the gross domestic product (GDP).
Kimberly Amadeo updated an article April 28, 2019 that explains past Goldilocks economies and the actions taken to help create this rare healthy economic climate. Actions cited often include legislation that raised taxes or lowered costs, or spurred the economy in other ways (such as limiting government spending, war, health care, etc.). Why might out economy now be a Goldilocks? We have solid economic growth without inflation.
If you are thinking about starting a new business and want to know more about our economic environment you may want to read more at: https://www.thebalance.com/goldilocks-economy-definition-causes-effects-3305932 Very interesting and readable article published in late April, 2019, that includes a lot of links to supportive information that help explain various terms, calculations, and theories.