1. You were given one of these countries with a relevant stock market and Fixed Rate
    market: USA, UK, Germany, Greece, Singapore, Brazil, Mexico, Spain, France,
    Canada, China, Italy, Holland.
  2. Identify its degree of the following variables over the past 20 years and draw
    relationships between:
  3. Government debt and corporate debt vs GDP
  4. length of government and corporate debt in years to maturity (ST 0-2 years, and
    LT 5, 10, 20, 30 years)
  5. % of Eurobonds of the public and corporate debt of listed companies in the
    country’s stock exchange
  6. Government bonds credit ratings on Fitch, Moody’s and Standard & Poor’s rating
    agencies, Bloomberg, Financial Times, Euronext
  7. Foreign Exchange rate vs other main currencies such as, USD, Euro, GBP, JPY,
    and / or CHF
  8. stock market performance vs interest rates and GDP growth, using country stock
    exchange index value (NYSE, DAX, CAC, MIL, IBEX, AEX, LSE, BOVESPA,
    Bolsa Mexicana, etc…)
    BCO221 – GLOBAL ECONOMICS Slide 3 [email protected]
    GROUP Exercise
    Team up in groups of 4 or 5 people
  9. Assess the economic performance and sustainability taking into consideration
    the country GDP, government debt and corporate debt as well as performance
    of the stock exchange, interest rates and GDP groth
  10. Do you need other information to complement your assessment? If so which
  11. If you had the ability to decide which indicators to focus on, would you
    measure other variables than the variables that Governments, Financial
    Markets, Rating Agencies and International Organizations are currently
    measuring? If Yes, which ones? Why?, If No, why not?

Sample Solution