Managerial Economics

Order Description You have two tasks to complete before answering the questions detailed below. 1. Watch the documentary inside the meltdown which can be viewed here: https://www.youtube.com/watch?v=5oLmvw0f-l0 Then watch the interview with Ben Bernanke which can be viewed here: https://www.youtube.com/watch?v=odPfHY4ekHA https://www.youtube.com/watch?v=e0zY8o0laZY 2. Browse through the working paper titled “Is Monetary Policy Too Complex for the Public? Evidence from the UK .” which can be viewed here: https://www.snb.ch/n/mmr/reference/working_paper_2017_15/source/working_paper_2017_15.n.pdf\ The working paper is discussed in the following article on Bloomberg: https://www.bloomberg.com/news/articles/2017-11-24/central-banks-are-right-when-they-say-no-one-understands-them Janet Yellen also discussed last week the importance of clear communication policy coming from FOMC Committee members and some of the challenges the Fed faces in this area. https://www.cnbc.com/2017/11/14/janet-yellen-admits-the-fed-could-be-confusing-the-public-with-its-many-voices.html Questions 1. Define systemic risk in the context of the documentary Inside the Meltdown – how did it influence the behavior and decision making of policy makers? 2. Contrast the way policy makers dealt with the concept of moral hazard in regards to the Bear Sterns and Lehman Brothers events in 2008 3. Discuss how Bernanke’s research background which focused on the great depression, influence the way the Fed responded to the crisis in 2008 4. How important a tool do you think communication policy is to Central Banks and the broader market? 5. Next month the FOMC meets on December 12th-13th. How will the FOMC communicate its Committee meeting decision to the market? 6. How well do you think the UAE Central Bank communicates its activities to the UAE market/general public?