Navigating the Boom/Bust Cycle

Introduction

I wrote this book to provide a road map for corporate managers and small-business owners to understand how the business cycle affects not only the general economy but also their companies no matter in what sector their businesses operate, and how to prepare for the inevitable downturns in the economy. As we shall see, recessions are unfortunately inevitable in our mixed economy, where the Federal Reserve has taken on the responsibility to “manage” the economy to provide high employment and low inflation by targeting short-term interest rates. We will examine the Federal Reserve’s track record, and readers can reach their own conclusions about the Fed’s policies.

When the economy is booming—or at least expanding at a moderate rate—and ...