The term "cooling effect" refers to a decrease in temperature, often used figuratively to describe something that has a calming or soothing influence. This can be applied to various situations and contexts - for example, a cool breeze may have a cooling effect on the body during hot weather, while a calm response from someone in an argument may have a cooling effect on tensions. In economics, it refers to a decrease in inflation rates or economic activity that can help stabilize prices and reduce demand-pull pressures.