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Abstract: 

Municipal analysts have long considered the impact of U.S. fiscal and monetary policy on interest rates and the economy. As we have recently seen, however, it is becoming increasingly necessary for municipal analysts to consider global fiscal and monetary policies, as well as sovereign credit, because these can have profound effects on our local economies and financial markets and, consequently, on municipal credit. Panelists will bring us up-to-date on fiscal and monetary challenges around the world, including a discussion of the credit quality of key sovereign governments in Europe and Asia and the potential for contagion into the United States through exposures of money market funds to European banks. The panel will also address how global trends should inform our thinking about what the next U.S. economic downturn might resemble.

Keywords: Global fiscal and monetary policies, sovereign credit, money market funds, European banks, contagion, economic downturn

Affiliations:  1: U.S. Trust, Bank of America Private Wealth Management; 2: U.S. Trust, Bank of America Private Wealth Management; 3: Fitch Ratings.