An inflationary period rarely announces itself as a single crisis. According to Unbroken Links by Dr Uppiliappan Gopalan, it arrives instead through a series of small, individually manageable movements that only become significant once they are viewed together.
The Quiet Chain Reaction
Suppliers revise prices, employees feel pressure on household costs, lenders reprice credit, customers become more selective, and inventory begins absorbing more cash because the same physical quantity now costs more to hold. Each movement may appear manageable in isolation, yet together they can change margins, demand and working capital at the same time.
Reading Economic Conditions Through Behaviour, Not Headlines
Management reads economic conditions through behaviour, using headlines as context for what customers, suppliers and lenders are actually doing. Macroeconomic movements become enterprise risks, Dr Gopalan writes, when they change the behaviour of customers, suppliers, lenders and the organisation itself.
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