Read the assigned Forbes article and summarize in at least 100 words.
Overall the economy is inevitably going into a recession based on the current economic conditions that the US and most of the world are currently in. According to Forbes, the next step is to start tracking when the actual recession will hit based on certain conditions. This can be determined by tracking monetary policy and inflation levels. Monetary policy greatly impacts the effects of the timing of recession and is based on how high-interest rates are set and second the decline in demand resulting in lowered unemployment. Lastly, the article goes into how there is expected to be a lag period between when the effects of monetary policy will allow for the recession to occur.
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.
One chapter related to the Forbes article is chapter 5. Chapter 5 is about how managers are affected by recessions since they will be the ones responsible for preparing the company for the recession. In the article they talk about times of decline it is important to prepare for a recession with a plan. When creating your company’s plan, managers need to monitor a company’s vulnerability to a recession, sketch out a contingency plan for a rec, and build flexibility into day-to-day operations. Overall, the article reviews the same ideas of how vulnerable and flexible your company may be. In Both readings, they talk about tracking monetary policy to determine the overall risk and to be ready for when times are economically weak by creating a contingency plan and figuring out what you will do before the recession hits.