Source- HBS Working Knowledge

A Macroeconomic View of the Current Economy

If they didn’t  understand it already, executives and corporate managers have learned one huge lesson over the past couple of years: macroeconomics matters.

Interest rates. Exchange rates. Trade deficits. The Gross Domestic Product. Inflation. All of these can affect a company’s bottom line by influencing the cost and availability of money, goods, and services. Macroeconomic forces can conspire to make business more difficult, but they can also present opportunities to executives who know how to, for example, read a country’s national income accounts and balance of payments. Read more…