Write an about 2-page paper to explore the issues related to the stock market and the bond market. if possible state the source of data/information you may use. find the quarterly data for the USA GDP evolution from 2005 to 2021 and hopefully you can identify the quarters in which GDP was growing and the decline during the latest recession. According to the data, for how many quarters GDP was declining? After the end of the recession, did GDP grow fast relative to the previous recessions? How high the unemployment rate reached during the latest recession?
According to NBER how many business cycles have occurred from 1945 to 2021? On average the period of each contraction/recession how many months has lasted? On average the period of each expansion (trough to peak) how many months has lasted? Looking at the expansion that ended in 2020, how many months the expansion lasted and how it compares to the previous expansions after 1945? describe the concept of a Credit Crunch and provide a discussion about if we should expect a credit crunch during a recession. During the latest recession the Federal Reserve in its effort to stabilize the economy, provided ample liquidity to financial markets and commercial banks. Would you expect in this case that consumers and businesses were exposed to a Credit Crunch? What actually happened during the most recent recession and what could be potential explanations?
How is Indirect Finance different than Direct Finance and in which one Asymmetric Information issues plays a role? How does the Principal-Agent problem apply to the risk of collapsing of Systemically Important Financial Institutions? explain.
As reference sources for data please use the following sources:
Nber.org, worldbank.org, Stlouisfed.org, bea.gov, federalreserve.gov, bls.gov, econoday.com, bea.org, unido.org
Please provide a list of references for your answers for your paper at the end.
http://www.nber.org/digest/sep16/w22360.html
http://www.nber.org/cycles/cyclesmain.html
https://research.stlouisfed.org/publications/review/08/09/Mizen.pdf
