What will you learn about?

A world where negative interest rates are the norm is new terrain, and many investors and advisors are uncertain of the effect. Will negative rates have the intended policy impact of spurring lending and reinvigorating economic growth? Has the policy distorted financial markets with an unorthodox approach to dealing with negative rates? How do the money markets handle a negative rate scenario where the communication channels between retail and non-financial customers break down? This course is designed to answer these and other questions.

What is the course syllabus?

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Lesson 1: Fiscal Policy

Topics covered in this chapter are:

  • Fiscal Policy in the U.S.
  • The 2008 Global Financial Crisis
  • The 2020 COVID-19 Pandemic
  • Challenges of Financing a Growing U.S. Fiscal Deficit

Lesson 2: Monetary Policy

Topics covered in this chapter are:

  • Monetary Policy Theory
  • U.S. Administered Interest Rates
  • The History of U.S. Monetary Policy from World War II to 2007
  • The History of U.S. Monetary Policy from 2008 to 2020
  • Quantitative Easing in the U.S.
  • The Global Extent of Quantitative Easing
  • Aggressive Monetary Easing in Hindsight
  • Impact of Aggressive Monetary Policy on the U.S. Bond Yields in 2020

Lesson 3: Modern Monetary Theory (MMT)

Topics covered in this chapter are:

  • Modern Monetary Theory Explained
  • Timeline of Modern Monetary Theory
  • Risks of Modern Monetary Theory

Lesson 4: Negative Interest Rates

Topics covered in this chapter are:

  • Defining Negative Interest Rates
  • How the Federal Reserve Board Would Implement Negative Interest Rates
  • The Fed and the ECB European Central Bank
  • The Magnitude of the Negative-Yielding Bond Market
  • Negative Interest Rates in the U.S. and Canada

Lesson 5: The Impact of Negative Interest Rates on Portfolio Management Strategies and Techniques

Topics covered in this chapter are:

  • Traditional Portfolio Management
  • Major Risks of Negative Interest Rates for Portfolio Management