Economic Cycle (Prosperity)

Further to Capital Corp Merchant Banking’s discussion of the Expansion portion of the Economic Cycle, the following will look at the next phase: Prosperity.

Coming after a period of economic growth or expansion, prosperity is a time where the economy has a nearly full employment rate, prices are increasing, and inflation is relatively high.

Representative time periods would be the “Roaring Twenties”, the 1960s, early 1980s and even one could consider the mid to late 1990s as years of prosperity.

As with all of these years of prosperity, there was a point of climax that marked the beginning of the eventual contraction of the economy.

The contraction aspect will be further discussed in a forthcoming communiqué.

Respectfully,

Capital Corp Merchant Banking, Inc