economics for bat: 1-pager cfa l1 & l2: economic theories 50% fed news 40% cod 10% by shivgan...
TRANSCRIPT
Economics for BAT: 1-Pager
CFA L1 & L2: Economic Theories 50%
Fed News 40%
COD 10%
By Shivgan Joshi
Central Bank & history of Fed Types of money in the system3 Balancing aspects: Interest rate vs.
Inflation effect vs. UE vs. Forward currency (FRB Index)
2003-2008-2012 Federal ReserveSterilized QE by ECBRole of China in US Financial System,
Yuan Manipulation, Reserve of UT Bonds
Currency Wars? Global Inflation caused by FR?
Cross currency ArbitrageDeadweight LossIndian Currency trends 55-50-60 J
Curve
Economics CFA L2
Numerical
Economic GrowthGovernment RegulationGross Domestic Product (or
Measuring Economic Activity)International TradeForeign Exchange Rate
Systems and Parity Relationships
Currency – bid ask – forward – inflation – etc
Relation between labor capital production 1/3
Economics CFA L2
Tough Questions
Numerical
Taylor ruleThree capital account – Taylors
theory of capital Currency & interest forwardEffect of currency on many things
– three things that effect currency Three growth theories - % of
growth and other thingsTaylor rule to determine the
appropriate policy rate isTFP GDP growth rates Y = AF(K, L)Taylor rule, Mundell–Fleming
model, Rüdiger Dornbusch
Portfolio CFA L2
10 Minutes refresher
Concepts – MVA – Multifactor – n assets
Active Portfolio – Information ratio – Tenor – Weights - new beta
IPC