Thank you for such a great semester, enjoy the break!
Read the assigned Forbes article and summarize in at least 100 words.
The article stressed how careful the federal reserve must be when combating inflation. This is due to the fact that most practices that aim to lower inflation also but the economy at increased risk of a recession. It was also interesting to see that even with all of the speculation about the recession starting late 2022 was wrong as GDP continued to grow through the end of the year. This is important for the federal reserve as their polices come with a time lag that usually takes up to a year.
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.
After reading the article, I feel as though the 7th chapter relates to the article the most. The 7th chapter taught about how to manage through a business cycle. I feel as though this is most applicable to today climate as we near a recession. The chapter teaches us that at this point in the economic cycle we should freeze capital spending and beginning to look at the possibility of liquidating assets. A hiring freeze should also be implemented with the goal of protecting the sales teams job. This is because they are the only division that that is directly responsible revenue.