Global Recession: The Insights You Need from Harvard Business Review

 

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AVOID MAKING THIS STRATEGIC MISTAKE IN A RECESSION

by Michael Greiner and Scott Julian

We are currently in the midst of the most severe economic crisis since the Great Depression. If this is purely a supply shock, then our economy should recover quickly once restrictions on economic activity are lifted. On the other hand, according to a report from the Becker Friedman Institute of the University of Chicago, 42 percent of the jobs lost so far in this crisis could be permanent losses. If that is the case, then this supply shock will turn into a demand crisis much like the Great Recession of 2008, and recovery will be much slower. With so much uncertainty, what should a strategist do?

We looked at data from the period right before the 2008 ...