Discretionary payment and K-shaped recovery: Difference between pages

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imported>Doug Williamson
(Create page. Source: The Treasurer, December 2020, p30.)
 
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''Cash forecasting and management''.
''Economics - recession and recovery.''


A discretionary payment is a forecast item which can be delayed or even avoided, so as to improve the organisation's net cash flow in the forecast period.
A "K" shaped recovery is characterised by a divergence in the recovery - or continued decline - of different sectors of the economy.
 
A chart of the key economic measures would resemble a letter "K".
 
 
:<span style="color:#4B0082">'''''Recovery forecasts diverge'''''</span>
 
:"The impact of COVID-19 is likely to preoccupy businesses into 2021. 
:As of early October [2020], financial markets appear to be pricing in a recovery.
 
 
:However, contingent on developing and rolling out an effective vaccination programme, economists disagree as to whether the recovery will be shaped as a ‘V’ (fast), ‘L’ (slow), ‘W’ (a second or even third wave of the virus) or – perhaps more insightfully – a ‘K’ (growth for some sectors, decline for others)."
 
 
:''The Treasurer magazine, December 2020, p30 - ACT Technical briefing.''






== See also ==
== See also ==
*[[Cash forecasting]]
* [[COVID-19]]
*[[Non-discretionary payment]]
* [[Deflation]]
* [[Depression]]
* [[Double dip]]
* [[Great Depression]]
* [[Great Recession]]
* [[Gross domestic product]]
* [[Inflation]]
* [[L-shaped recovery]]
* [[Recession]]
* [[Recovery]]
* [[Reflation]]
* [[Softness]]
* [[Trumponomics]]
* [[U-shaped recovery]]
* [[V-shaped recovery]]
* [[W-shaped recovery]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Cash_management]]
[[Category:Identify_and_assess_risks]]
[[Category:Financial_products_and_markets]]

Revision as of 18:40, 18 November 2020

Economics - recession and recovery.

A "K" shaped recovery is characterised by a divergence in the recovery - or continued decline - of different sectors of the economy.

A chart of the key economic measures would resemble a letter "K".


Recovery forecasts diverge
"The impact of COVID-19 is likely to preoccupy businesses into 2021.
As of early October [2020], financial markets appear to be pricing in a recovery.


However, contingent on developing and rolling out an effective vaccination programme, economists disagree as to whether the recovery will be shaped as a ‘V’ (fast), ‘L’ (slow), ‘W’ (a second or even third wave of the virus) or – perhaps more insightfully – a ‘K’ (growth for some sectors, decline for others)."


The Treasurer magazine, December 2020, p30 - ACT Technical briefing.


See also