Search results for: 'Monetary policies'
QE Liquidity in search of profitability: the dilemma … EC1-135-I
This case seeks two purposes. First, illustrating the relevance of the economic environment for determining business profitability. Second, putting in practice students acquired macroeconomic analytical skills by using them to support a real life financial investment decision. The students are asked to endorse one of two options, US or Brazil, for the launching of a new investment fund by FTInvest, a financial investment company. The recommendation is made by students acting as members of the Economic Research Department of the company. Therefore, it should be based on the country identified by them as providing the most favorable economic environment for the profitability of the investment in the medium/long run. The decision takes place in the second half of 2011, at a time when the US economy showed a hesitant recovery after the Great Global Recession of 2008 and when the Brazilian economy was booming after a very short blip. It was also at a time when, due to ultra-loose US monetary policy, interest rates and yields were at historical lows in the US while they were relatively high in Brazil.Academic Area:Economic Environment & Public Affairs | Finance
Interactive graph of aggregate demand policies EC2-026-I-M
This is an interactive tutorial that allows students to see the effect of changes in monetary and fiscal aggregate demand policies on the adjustment of the goods and services and asset markets.
The tool assumes that students have already studied the concepts underlying the adjustment processes of the goods and services market and the asset market. For a better understanding of the main effects of monetary and fiscal policies on the overall adjustment of both markets this graphic resource does not envisage simultaneous execution of both policies nor their effects on capital movements and exchange rates. The tool also contains some simple exercises that enable students to contrast their answers by using the interactive graph.Academic Area:Economic Environment & Public Affairs