周教授CFA金融课程：2019 CFA Level II Economics for Valuation

STUDY SESSION 4 Economics for Valuation

This study session begins with fundamental foreign exchange concept and theories of exchange rate determination. As a means to understanding exchange rate risk expo- sures, discussion centers on theoretical long-term equilibrium values. International parity conditions and the carry trade are described. Both direct (capital controls, foreign exchange intervention) and indirect (monetary, fiscal policy) exchange rate influencers are considered. A discussion of long-term growth and its relationship to investment returns follows. The three theories of growth (classical, neoclassical, endogenous) are presented. The session concludes with an overview of regulation, including the types, roles played by regulation, and advantages and disadvantages of having regulation in place.

READING ASSIGNMENTS

Reading 13 Currency Exchange Rates: Determination and Forecasting

Reading 14 Economic Growth and the Investment Decision

Reading 15 Economics of Regulation

Exam Weight: 5-10%

Economics 经济学