Question

What does it mean when we say that policy change requires a "window of opportunity" in order to be successful? Can you find an example of something in the news which may create a "window of opportunity" for a policy change to occur? Please explain exactly HOW your example offers a window of opportunity, including your reasoning for thinking so.

Answer 1

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To ensure success any actionable strategy requires a favorable scenario. A favorable scenario creates a window of opportunities most suited for successful strategic change. The example is taken when a policy change has been introduced by the Federal Reserve about the federal funds rate. Federal funds rates have been held up to 0 per cent since 2008. Recently, however, the Federal Reserve has changed the policy and raised the federal fund rates, and it is expected to rise again from 0.5 to 0.75%. This change in policy has occurred because of the economic outlook that provided the window of opportunity to increase the rates.

Recent economic outlook shows:

• Consistent job opportunities rise.
• Total GDP steady increase.
• Increase confidence among investors.

Over the metrics, the Federal Reserve is creating opportunities to hike rates and return to normal as before the 2008 recession.