Read the assigned Forbes article and summarize in at least 100 words.
After reading the article, it is clear that Bill Conerly believes that a recession is right around the corner. In an effort to delay the start of the recession, the Federal Reserve is tightening the monetary policy. Which has been working so far, as we are not currently in a recession. The article then talks about how it’s still very possible for a recession to hit and that lag times can be different between real economic changes and monetary policy changes. There is no one hundred percent sure way of predicting when a recession will come, but Conerly believes that a recession will most likely hit in late 2023 or early 2024.
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.
The chapter in the book that relates the most to the article we just read was chapter 7: Managing Through the Business Cycle. Near the end of the article, Conerly gives tips and advice for businesses on what they should do to prepare for a future recession. Conerly mentions having a strong contingency plan, which is the most important thing a business can do to prepare for a recession. He also mentions reducing capital spending, tightening credit terms, and looking into staff cuts. All three of those points Conerly made can be found directly in Chapter 7 of our book, under “Checklist for Managing in a Downturn.”