👉 Overexpansion is a concept in economics that refers to the extent to which an economy grows beyond its natural capacity, leading to inflation and economic instability. It occurs when the government or central bank attempts to stimulate growth by increasing interest rates, which can lead to excessive borrowing and investment, causing the economy to grow too quickly and over-expend itself. Overexpansion is often characterized as a "stagflation" situation where inflation is high but unemployment remains low, indicating that the economy has not yet reached
