Read the assigned Forbes article and summarize in at least 100 words.
Bill Conerly believes that a recession is very likely in Americas future. The federal reserve is tightening the monetary conditions, which is seemingly estimated to increase the delay of the recession hitting. Third quarter 2022 data indicates that a recession has not hit yet, which means the tightening of monetary conditions might be delaying it as planned. The article continues to talk about the possibilities of a recession and how the lag times are different between monetary policy changes and real economic changes. Conerly thinks that a recession will hit most likely in late 2023 or early 2024, but said the forecast should be taken with a grain of salt.
Reflect on what we learned in the course, find at least one chapter in the textbook where we discuss the related topic, and explain how the chapter(s) is related to the reported event in the article. Do this in at least 100 words.
This article reminded me a lot about Chapter 7: Managing Through the Business Cycle. At the end of the article Bill Conerly gives advice to businesses on how to prepare for the coming recession. In the article we see Conerly talk about contingency planning, which is one of the first steps that should be taken while planning for a recession. Afterwards Conerly seemingly follows along the Chapter 7 heading “Checklist for Managing in a Downturn”. He says that companies should reduce capital spending, look into staff cuts, and tightening credit terms. All three of those can be found in Chapter 7 for planning before a recession hits.