9. Getting Our Groove Back
Business cycles, the economy’s ups and downs, have a regularity to them. During boom times, when the economy is firing on all cylinders, euphoric households tend to spend and borrow too much. Businesses overbuild, overstock their inventories, and add too many workers to their payrolls. Banks let down their guard and make too many loans. Job seekers find they can be choosy about wages and working conditions. And with the economy running flat-out, prices for most goods and services rise quickly.
The Federal Reserve responds to higher inflation by first tapping and then invariably stomping on the monetary brakes. The resulting higher interest rates leave overextended households and businesses vulnerable. Any sort of mishap ...
Get Paying the Price: Ending the Great Recession and Beginning a New American Century now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
