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
This interactive case study combines data that is publicly available in Google Data with questions for the students so they can reflect on the policies of Japan that affect their economic development.
The idea is that students can understand the liquidity trap (how low interest rates end up making the monetary policy useless), what can be expected of growth when it is based on debt, some of the structural limits to growth (like aging population and technology) and the importance of political stability in the growth process.
The context for the case is a meeting where the finance ministry of Japan calls on the class (who role play as consultants) to help them understand the situation. The information offered includes embedded content from google data that the students can navigate through different graphs organized to depict many of the main economic variables and relevant relations between them, and is combined with research questions to ensure active student participation. It also has a professors page that will include additional information on several events related to social, economic and political events that affect the aforementioned variables, as well as a place to display the students answers, that may be hand-picked if desired.
An advantage of using Google Data for this case is the fact that the information is kept permanently up-to-dateAcademic Area:Economic Environment & Public Affairs
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