Over the course of history, fashion and economic conditions have proven to be inextricably linked. Aside from its role as carrier of societal and cultural mores, trends and preferences, fashion is typically also a means of reflecting the economic wealth (or downturn) associated with any given time period, with fashion designers and consumers alike responding with the movements of the economy.

Remember those luxurious fabrics of the Renaissance and the extravagant flapper dresses of the Roaring Twenties? Each of these were a sign of the times. In fact, post-World War II France, Christian Dior introduced the New Look — a fashion statement that bit back at the modesty and simplicity of the age that has passed and used layers upon layers of fabrics, to symbolize luxury after a period of fabric rationing.

Then there was the indie sleaze era, emerging as a result of the economic crisis of 2008.It picked up the previous Indie rock movement and proliferated mixed fabrics, messy hair, and a look of undoneness — like going through your parents’ 70s and 80s closet and throwing on a pair of your jeans because, well, you couldn’t afford to shop for new clothes. This example suggests that every fashion trend carries subtle nuances that tell the story of the prevalent economic climate: “When times are drab, maximalism seems to be the standard response,” ELLE Fashion Features Director Veronica Hyland told GQ.

Today, we are experiencing a fashion period dubbed “Recession Core,” with long skirts, vests, blazers — basic pieces accompanied with simple patterns and neutral colors. The current season’s silhouettes, basic color palettes and minimalistic approach take inspiration from past decades, and effectively impact the present, particularly through the Hemline Index, which posits that there’s a connection between the economy and the popular length of a skirt during that period.

Hemline… what? Stay with us here: During times of prosperity, hemlines tend to get shorter and micro skirts are everywhere. When there is a crisis (you guessed it), down goes the hemline, and maxi skirts are back. For example, hemlines rose in the 1920s as the stock market surged but fell during the Great Depression.

High net worth individuals are also consistentin their luxury spending habits:While some individuals who typically shop for more affordable brands tend to reduce their spending and only purchase high-quality items to replace those that have been lost or damaged, which in the long run are affecting emerging or newly-emerged designers in the market, suggests Julius Baer’s Global Wealth and Lifestyle Report.

The fashion industry, like others, is facing some tough times. Global economic and political headwinds have impacted the fashion industry, too, British Fashion Council CEO Caroline Rush said, according to Vogue. The war in Ukraine, the rising cost of living, decreasing consumer confidence, and currency devaluations have caused smaller or emerging brands to struggle to expand their businesses. This lack of growth leads to reduced brand exposure and sales, which are critical to keep these businesses afloat, Rush noted.

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