Finance professor Julie Fitzpatrick will have her paper, "Estimating the Link between QE3 and Business Investment," published in the forthcoming edition of The Business Research Consortium Journal of Business.
Co-authored with Joseph Cheng, associate professor of Finance and International Business at Ithaca College, the article explores the effectiveness of Quantitative Easing (QE) in stimulating business investment. QE is described as a tool used by the Federal Reserve to increases the amount of money in the financial markets. In turn, it is expected that this additional money will be invested by businesses in various projects, such as construction of new plants or purchases of new equipment.
The paper proposes a new development called the "Investment Realization Ratio" that can be used to estimate the amount of business investment produced. The goal of creating this ratio was to develop a model which could illustrate the relationship of funds put into the financial market and the amount of money spent on business investments in a clear and straightforward manner.
Dr. Fitzpatrick teaches Managerial Finance and Corporate Finance in the department of Business Administration.
