While much of finance deals with micro issues–e.g., financial performance of a specific firm, profitable investment projects for a company, what level of debt is reasonable, etc.–, it is important to remember that macroeonomic factors significantly impact firms. These macroeconomic factors include the state of the economy, level of interest rates, monetary policy, international capital flows, term structure of interest rates, etc.
Discuss the state of the macroeconomy and its impact on the firm. Your task is threefold:
1.to find and discuss quantitative information concerning the economy–for example, term structure of interest rates, GDP growth, inflation, etc.
2.to read and summarize two authoritative opinions on the state of the economy or monetary policy
3.to use the information you gather to give your informed opinion of how the macroeconomy might impact firm behavior today.