- 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. - Identify its degree of the following variables over the past 20 years and draw
relationships between: - Government debt and corporate debt vs GDP
- length of government and corporate debt in years to maturity (ST 0-2 years, and
LT 5, 10, 20, 30 years) - % of Eurobonds of the public and corporate debt of listed companies in the
country’s stock exchange - Government bonds credit ratings on Fitch, Moody’s and Standard & Poor’s rating
agencies, Bloomberg, Financial Times, Euronext - Foreign Exchange rate vs other main currencies such as, USD, Euro, GBP, JPY,
and / or CHF - 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 - 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 - Do you need other information to complement your assessment? If so which
one? - 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
