Overheated Economy Shows Signs of Cooling

The question now for Will World economists and the central bank, is did they turn down the heat too much?  Growth last cycle dropped to almost nothing; unemployment remained almost unchanged but as a lagging indicator, we might not see the full effects until next cycle.

The interest rate increase was successful in curbing Willian’s appetite for debt.  Consumer debt levels remained stable last cycle.  Sales of consumer goods dropped slightly as consumers dealt with higher interest costs.

The production of consumer products dropped last cycle, allowing many firms to sell their excess inventory.

If the central bank wanted to put the breaks on the economy, it certainly looks like they have succeeded.

banner ad

Leave a Reply