Part 7/10:
- Corporate Bankruptcies: An increase in business failures indicates financial distress that could amplify unemployment and reduce economic activity.
The Perspective of Experts
Economists emphasize that the current contraction in the money supply is likely just the beginning of a broader economic slowdown. The effects of previous rate hikes take time to permeate through the economy, often unfolding months or even years after the initial policy changes. Therefore, the early signs observed now could foreshadow more significant downturns ahead.