Interest Rates: Set by central banks (like the Federal Reserve). When interest rates are low, borrowing money is cheap, so companies expand, hire, and spend more on marketing. When inflation gets too high, banks raise interest rates to cool the economy down. Borrowing becomes expensive, and companies cut budgets.

The Business Cycle: Economies naturally go through phases of Expansion (growth), Peak, Contraction (recession), and Trough.

Marketing Impact: During an expansion, marketing focuses on brand building and premium products. During a contraction (recession), marketing pivots to value, discounts, and proving ROI, because consumers are highly sensitive to inflation.