"Less emphasis on inventories, I think, may tend to dampen business cycles, because business cycles are typically in the grasp of inventory cycles and heavy industry cycles"

Paul A. Volcker's quote recommends that decreasing the concentrate on supplies could help to decrease the extent of organization cycles. Business cycles are typically driven by supply cycles as well as heavy sector cycles, which are both greatly reliant on inventory levels. By decreasing the focus on inventories, businesses can lower the amount of inventory they require to hold, which in turn can lower the amount of inventory-related changes in the economic climate. This could assist to minimize the severity of service cycles, as services would be much less most likely to experience large swings in stock degrees. Additionally, reducing the concentrate on supplies could assist to minimize the quantity of resources bound in supply, maximizing resources for other investments. Inevitably, reducing the emphasis on supplies might aid to decrease the severity of organization cycles and develop a much more steady economic environment.