Is It Just Me Or Does It Really Feel Like The Economy Is Falling Off A Cliff?
3 min readJan 31, 2023
Unless you live on Mars, you’ve probably had conversations with friends, relatives, and acquaintances about the tightening economy, as of late. It seems that everyone (or almost) everyone has been feeling the impact of higher prices and higher interest rates; this makes sense. Once prices get high enough, people stop buying; it’s inevitable that people stop buying when monetary policy is not expanding: right now it’s tightening.
Interest rates are up, and the Federal Reserve is decreasing its balance sheet. In fact, if you look at broad measures of money supply, the money supply is decreasing — when adjusted for inflation.
Perhaps people feel like the economy is not doing “good” because it isn’t doing good.
