Economics

In this section

• Chapter 1: Market Forces of Supply and Demand
  Chapter 1: Market Forces of Supply and Demand (CFA Level 1): Practical explanations of core ideas, with key terms, formulas, and common exam pitfalls.
  • Introduction to Supply and Demand
    Introduction to Supply and Demand (CFA Level 1): Key Concepts in Supply and Demand, Demand, and Supply. Exam-focused explanations with key terms and takeaways.
  • Equilibrium, Surplus, and Shortage
    Equilibrium, Surplus, and Shortage (CFA Level 1): Defining Equilibrium: Where Supply Meets Demand, Why Equilibrium Matters, and Key Concepts and Terminology. Key definitions, formulas, and exam tips.
  • Consumer and Producer Surplus
    Consumer and Producer Surplus (CFA Level 1): Defining Consumer Surplus, Defining Producer Surplus, and Graphical Representation and Key Insights. Key definitions, formulas, and exam tips.
  • Market Efficiency and Deadweight Loss
    Market Efficiency and Deadweight Loss (CFA Level 1): Defining Efficiency and Surplus, Economic Efficiency, and Total Surplus and Its Components. Key definitions, formulas, and exam tips.
  • Elasticities (Price, Income, Cross)
    Elasticities (Price, Income, Cross) (CFA Level 1): Price Elasticity of Demand, Main Determinants of Price Elasticity of Demand, and Price Elasticity of Demand and Total Revenue. Key definitions, formulas, and exam tips.
  • Government Intervention (Price Floors, Price Ceilings, Taxes, Subsidies)
    Government Intervention (Price Floors, Price Ceilings, Taxes, Subsidies) (CFA Level 1): Price Floors, Key Mechanism, and Price Ceilings. Key definitions, formulas, and exam tips.
  • Demand and Supply Shifters
    Demand and Supply Shifters (CFA Level 1): Understanding Demand Shifters, Changes in Consumer Income, and Prices of Related Goods: Substitutes and Complements. Key definitions, formulas, and exam tips.
  • Common Resources and Public Goods
    Common Resources and Public Goods (CFA Level 1): Rivalry and Excludability, Common Resources, and Tragedy of the Commons. Key definitions, formulas, and exam tips.
  • Market Failures and Asymmetric Information
    Market Failures and Asymmetric Information (CFA Level 1): Defining Market Failure, Externalities and Their Impact, and Correcting Externalities with Pigouvian Taxes or Subsidies. Key definitions, formulas, and exam tips.
• Chapter 2: The Firm and Industry Organization
  Chapter 2: The Firm and Industry Organization (CFA Level 1): Practical explanations of core ideas, with key terms, formulas, and common exam pitfalls.
  • Cost Structures, Breakeven, and Shutdown Points
    Cost Structures, Breakeven, and Shutdown Points (CFA Level 1): Distinguishing Fixed and Variable Costs, Total, Average, and Marginal Costs, and Breakeven Analysis. Key definitions, formulas, and exam tips.
  • Short-Run and Long-Run Cost Curves
    Short-Run and Long-Run Cost Curves (CFA Level 1): Background and Context, Key Principles of Short-Run Cost Curves, and Fixed and Variable Inputs in the Short Run. Key definitions, formulas, and exam tips.
  • Perfect Competition
    Perfect Competition (CFA Level 1): Basic Characteristics, Short-Run Equilibrium, and Price = Marginal Cost. Exam-focused explanations with key terms and takeaways.
  • Monopolistic Competition
    Monopolistic Competition (CFA Level 1): Core Features of Monopolistic Competition, Short-Run Equilibrium, and Long-Run Equilibrium and Excess Capacity. Key definitions, formulas, and exam tips.
  • Oligopoly (Strategic Interaction and Game Theory)
    Oligopoly (Strategic Interaction and Game Theory) (CFA Level 1): Key Characteristics of Oligopolies, Strategic Interaction and Game Theory, and Rationale for Game Theory. Key definitions, formulas, and exam tips.
  • Monopoly and Market Power
    Monopoly and Market Power (CFA Level 1): Key Characteristics of a Monopoly, Single Seller and Unique Product, and Barriers to Entry. Key definitions, formulas, and exam tips.
  • Efficiency and Welfare Implications of Different Market Structures
    Efficiency and Welfare Implications of Different Market Structures (CFA Level 1): Market Structures and Efficiency, Perfect Competition, and Monopolistic Competition. Key definitions, formulas, and exam tips.
  • Industry Concentration and Market Measures
    Industry Concentration and Market Measures (CFA Level 1): Key Measures of Industry Concentration, Concentration Ratios (CRn), and Herfindahl-Hirschman Index (HHI). Key definitions, formulas, and exam tips.
  • Price Discrimination in Market Structures
    Price Discrimination in Market Structures (CFA Level 1): Key Principles of Price Discrimination, First-Degree (Perfect) Price Discrimination, and Second-Degree (Quantity-Based or Menu Pricing). Key definitions, formulas, and exam tips.
  • Natural Monopoly and Regulation
    Natural Monopoly and Regulation (CFA Level 1): Defining a Natural Monopoly, Cost Structures Behind Natural Monopoly, and Anecdote: The “Extra” Subway Track. Key definitions, formulas, and exam tips.
  • Managerial and Behavioral Theories of the Firm
    Managerial and Behavioral Theories of the Firm (CFA Level 1): Traditional View vs. Managerial Theories, Baumol’s Revenue-Maximization Hypothesis, and Marris’s Growth-Maximization Model. Key definitions, formulas, and exam tips.
• Chapter 3: Business Cycles
  Chapter 3: Business Cycles (CFA Level 1): Key concepts, definitions, and exam tips with practical examples. Use it to reinforce intuition and avoid common pitfalls.
  • Measuring GDP and National Income
    Measuring GDP and National Income (CFA Level 1): Understanding the Concept of GDP, Approaches to Measuring GDP, and Expenditure Approach. Key definitions, formulas, and exam tips.
  • Real vs. Nominal GDP
    Real vs. Nominal GDP (CFA Level 1): Understanding Nominal GDP, Real GDP and the Role of Inflation, and Calculating Real GDP: Basic Approach. Key definitions, formulas, and exam tips.
  • Aggregate Demand and Aggregate Supply Model
    Aggregate Demand and Aggregate Supply Model (CFA Level 1): Aggregate Demand: Key Components, Short-Run Aggregate Supply (SRAS), and Long-Run Aggregate Supply (LRAS). Key definitions, formulas, and exam tips.
  • Short-Run vs. Long-Run Aggregate Supply
    Short-Run vs. Long-Run Aggregate Supply (CFA Level 1): Why We Care About Aggregate Supply, Short-Run Aggregate Supply: The Upward Sloping Curve, and Positive Shifts in SRAS. Key definitions, formulas, and exam tips.
  • Phases of the Business Cycle
    Phases of the Business Cycle (CFA Level 1): Business Cycle in Context, Defining the Business Cycle, and Core Phases of the Business Cycle. Key definitions, formulas, and exam tips.
  • Economic Indicators (Leading, Coincident, Lagging)
    Economic Indicators (Leading, Coincident, Lagging) (CFA Level 1): Why Indicators Matter, Leading Indicators, and Quick Anecdote. Key definitions, formulas, and exam tips.
  • Credit Cycles and the Role of Inventories
    Credit Cycles and the Role of Inventories (CFA Level 1): Test Your Knowledge: Credit Cycles and Inventory Dynamics and During a credit expansion, how do manufacturers typically. Key definitions, formulas, and exam tips.
  • Unemployment and Output Gaps
    Unemployment and Output Gaps (CFA Level 1): Understanding Unemployment, Why Unemployment Matters to Investors, and Concept of Potential Output. Key definitions, formulas, and exam tips.
  • Okun’s Law and Economic Growth
    Okun’s Law and Economic Growth (CFA Level 1): Understanding the Relationship Between GDP Growth and Unemployment, Empirical Nature of Okun’s Law, and Interpreting Okun’s Coefficient. Key definitions, formulas, and exam tips.
  • Hysteresis in Unemployment
    Hysteresis in Unemployment (CFA Level 1): Defining Hysteresis, Key Mechanisms Behind Hysteresis, and Why Hysteresis Matters for Business Cycle Analysis. Key definitions, formulas, and exam tips.
  • Measuring Potential Output and Output Gap Approaches
    Measuring Potential Output and Output Gap Approaches (CFA Level 1): Understanding Potential Output, Why Potential Output Matters for Policy and Forecasting, and Approaches to Measuring Potential Output. Key definitions, formulas, and exam tips.
  • Labor Market Dynamics (Frictional, Structural, Cyclical Unemployment)
    Labor Market Dynamics (Frictional, Structural, Cyclical Unemployment) (CFA Level 1): Theoretical Foundations of Unemployment, Frictional Unemployment, and Causes. Key definitions, formulas, and exam tips.
• Chapter 4: Inflation and Deflation
  Chapter 4: Inflation and Deflation (CFA Level 1): Key concepts, definitions, and exam tips with practical examples. Use it to reinforce intuition and avoid common pitfalls.
  • Measuring Inflation (CPI, PPI, GDP Deflator)
    Measuring Inflation (CPI, PPI, GDP Deflator) (CFA Level 1): Why Measuring Inflation Matters, Consumer Price Index (CPI), and Key Features. Key definitions, formulas, and exam tips.
  • The Quantity Theory of Money
    The Quantity Theory of Money (CFA Level 1): Short-Run vs. Long-Run Dynamics, Mechanism and Policy Relevance, and Modern Monetarism and Policy Approaches. Key definitions, formulas, and exam tips.
  • Causes and Types of Inflation (Demand‐Pull vs. Cost‐Push)
    Causes and Types of Inflation (Demand‐Pull vs. Cost‐Push) (CFA Level 1): Demand-Pull Inflation, Demand-Pull Inflation in the AD/AS Model, and Cost-Push Inflation. Key definitions, formulas, and exam tips.
  • Consequences of Inflation and Deflation
    Consequences of Inflation and Deflation (CFA Level 1): Big Picture, Consequences of Inflation, and Reduced Purchasing Power. Key definitions, formulas, and exam tips.
  • The Phillips Curve and Price Stability
    The Phillips Curve and Price Stability (CFA Level 1): Phillips Curve in the Short Run, Phillips Curve in the Long Run, and Role of Inflation Expectations. Key definitions, formulas, and exam tips.
  • Stagflation and Supply Shocks
    Stagflation and Supply Shocks (CFA Level 1): Understanding Stagflation, Negative and Positive Supply Shocks, and Negative Supply Shocks. Key definitions, formulas, and exam tips.
  • Hyperinflation and Historical Perspectives
    Hyperinflation and Historical Perspectives (CFA Level 1): What Is Hyperinflation?, Typical Causes of Hyperinflation, and Economic and Social Fallout. Key definitions, formulas, and exam tips.
  • Core vs. Headline Inflation Measures
    Core vs. Headline Inflation Measures (CFA Level 1): Headline Inflation, Influence of Commodity Swings, and Core Inflation. Key definitions, formulas, and exam tips.
• Chapter 5: International Trade and Capital Flows
  Chapter 5: International Trade and Capital Flows (CFA Level 1): Practical explanations of core ideas, with key terms, formulas, and common exam pitfalls.
  • Comparative Advantage and Gains from Trade
    Comparative Advantage and Gains from Trade (CFA Level 1): Foundations of Comparative vs. Absolute Advantage, Quick Anecdote, and Understanding Opportunity Cost. Key definitions, formulas, and exam tips.
  • Tariffs, Quotas, and Other Trade Barriers
    Tariffs, Quotas, and Other Trade Barriers (CFA Level 1): Key Concepts and Motivations Behind Trade Barriers, Tariffs, and Types of Tariffs. Key definitions, formulas, and exam tips.
  • Trading Blocs and Regional Integration
    Trading Blocs and Regional Integration (CFA Level 1): Key Definitions and Levels of Integration, Free Trade Area (FTA), and Customs Union. Key definitions, formulas, and exam tips.
  • Current Account, Capital Account, and Balance of Payments Composition
    Current Account, Capital Account, and Balance of Payments Composition (CFA Level 1): Structure of the Balance of Payments, Current Account, and Current Account Balance and Economic Interpretation. Key definitions, formulas, and exam tips.
  • Marshall-Lerner Condition and J-Curve
    Marshall-Lerner Condition and J-Curve (CFA Level 1): Marshall-Lerner Condition, Why Elasticities Matter, and Price Elasticities of Exports and Imports. Key definitions, formulas, and exam tips.
  • Levels of Economic Integration
    Levels of Economic Integration (CFA Level 1): Progression of Economic Integration Levels, Preferential Trading Area (PTA), and Free Trade Area (FTA). Key definitions, formulas, and exam tips.
  • Terms of Trade
    Terms of Trade (CFA Level 1): Key Forces Driving Terms of Trade, Global Commodity Prices, and Shifts in Global Demand. Key definitions, formulas, and exam tips.
  • Trade in Services and Global Value Chains
    Trade in Services and Global Value Chains (CFA Level 1): Growth of Services in Modern Trade, Measuring Services Trade, and Rise of Global Value Chains (GVCs). Key definitions, formulas, and exam tips.
• Chapter 6: Currency Exchange Rates
  Chapter 6: Currency Exchange Rates (CFA Level 1): Key concepts, definitions, and exam tips with practical examples. Use it to reinforce intuition and avoid common pitfalls.
  • Nominal versus Real Exchange Rates
    Nominal versus Real Exchange Rates (CFA Level 1): Nominal Exchange Rates, Real Exchange Rates, and Role of Inflation. Key definitions, formulas, and exam tips.
  • Exchange Rate Determination and Regimes
    Exchange Rate Determination and Regimes (CFA Level 1): Key Drivers of Exchange Rate Determination, Trade Flows, and Interest Rate Differentials. Key definitions, formulas, and exam tips.
  • Purchasing Power Parity and Interest Rate Parity
    Purchasing Power Parity and Interest Rate Parity (CFA Level 1): Purchasing Power Parity, Absolute Purchasing Power Parity, and Relative Purchasing Power Parity. Key definitions, formulas, and exam tips.
  • Spot and Forward Exchange Rates
    Spot and Forward Exchange Rates (CFA Level 1): Spot Exchange Rates, Practical Spot Market Dynamics, and Forward Exchange Rates. Key definitions, formulas, and exam tips.
  • Triangular Arbitrage and Cross Rates
    Triangular Arbitrage and Cross Rates (CFA Level 1): Cross Rates Explained, Triangular Arbitrage: The Big Picture, and Why Does Mispricing Occur?. Key definitions, formulas, and exam tips.
  • Currency Hedging, Speculation, and Carry Trades
    Currency Hedging, Speculation, and Carry Trades (CFA Level 1): Purpose of Currency Hedging, Common Hedging Tools, and Tools for Currency Hedging. Key definitions, formulas, and exam tips.
  • Effective Exchange Rate Indices
    Effective Exchange Rate Indices (CFA Level 1): Nominal Effective Exchange Rate (NEER), Why Use NEER?, and Limitations of NEER. Key definitions, formulas, and exam tips.
  • The Impossible Trinity (Monetary Policy, Exchange Rates, Capital Flows)
    The Impossible Trinity (Monetary Policy, Exchange Rates, Capital Flows) (CFA Level 1): Core Concepts of the Trilemma, Why Is This “Impossible”?, and Policy Trade-Offs and Strategies. Key definitions, formulas, and exam tips.
  • Exchange Rate Pass-Through to Domestic Prices
    Exchange Rate Pass-Through to Domestic Prices (CFA Level 1): Key Concepts of Exchange Rate Pass-Through, Types of Exchange Rate Pass-Through, and Determinants of Pass-Through Intensity. Key definitions, formulas, and exam tips.
• Chapter 7: Monetary System, Monetary and Fiscal Policy
  Chapter 7: Monetary System, Monetary and Fiscal Policy (CFA Level 1): Key concepts explained with clear definitions, formulas, and exam-focused examples.
  • Money, Central Banks, and the Money Supply
    Money, Central Banks, and the Money Supply (CFA Level 1): Defining Money and Its Functions, Evolution of Money: From Gold to Fiat, and Role of Central Banks. Key definitions, formulas, and exam tips.
  • Demand for Money and the Equation of Exchange
    Demand for Money and the Equation of Exchange (CFA Level 1): Why Households and Firms Hold Money, Keynesian Approach to Money Demand, and Monetarist View and the Quantity Theory of. Key definitions, formulas, and exam tips.
  • Inflation Targeting and Other Monetary Policy Regimes
    Inflation Targeting and Other Monetary Policy Regimes (CFA Level 1): Inflation Targeting: Meaning and Mechanics, Core Principles, and Monetary Policy Tools to Achieve the Target. Key definitions, formulas, and exam tips.
  • Automatic Stabilizers and the Role of Government Debt
    Automatic Stabilizers and the Role of Government Debt (CFA Level 1): Defining Automatic Stabilizers and Comparing Automatic Stabilizers with Discretionary Fiscal Policy. Key definitions, formulas, and exam tips.
  • Implementation Lags in Monetary and Fiscal Policy
    Implementation Lags in Monetary and Fiscal Policy (CFA Level 1): Nature of Policy Lags, Recognition Lag, and Decision (Legislative or Administrative) Lag. Key definitions, formulas, and exam tips.
  • Monetary Policy Tools and Transmission Mechanisms
    Monetary Policy Tools and Transmission Mechanisms (CFA Level 1): Major Monetary Policy Tools, Open Market Operations (OMOs), and Policy Rates (Discount Rate, Base Rate, Fed Funds. Key definitions, formulas, and exam tips.
  • Fiscal Policy Tools (Government Spending, Taxation, Budgets)
    Fiscal Policy Tools (Government Spending, Taxation, Budgets) (CFA Level 1): Government Spending, Public Goods, and Transfer Payments. Key definitions, formulas, and exam tips.
  • Fiscal Multipliers
    Fiscal Multipliers (CFA Level 1): Defining Fiscal Multipliers, Why Do Multipliers Exist?, and Government Spending Multiplier. Key definitions, formulas, and exam tips.
  • Interactions between Monetary and Fiscal Policy
    Interactions between Monetary and Fiscal Policy (CFA Level 1): Coordinated Policy for Growth and Price Stability, Policy Mix, and Toward an Optimal Mix. Key definitions, formulas, and exam tips.
  • Monetary Policy Strategy (Exchange Rate vs. Inflation Targeting)
    Monetary Policy Strategy (Exchange Rate vs. Inflation Targeting) (CFA Level 1): Exchange Rate Targeting vs. Inflation Targeting, Benefits and Drawbacks of a Fixed Exchange Rate, and Benefits. Key definitions, formulas, and exam tips.
  • Central Bank Independence and Credibility
    Central Bank Independence and Credibility (CFA Level 1): Why Independence Matters, Credibility, Communication, and Public Perception, and Operational Independence. Key definitions, formulas, and exam tips.
  • Unconventional Monetary Policies (Quantitative Easing)
    Unconventional Monetary Policies (Quantitative Easing) (CFA Level 1): Which of the following best describes a primary and increase in the central bank’s balance sheet. Key definitions, formulas, and exam tips.
  • Zero Lower Bound Constraints and Negative Interest Rates
    Zero Lower Bound Constraints and Negative Interest Rates (CFA Level 1): Understanding the Zero Lower Bound, Why Zero is Viewed as a ‘Natural Floor’, and Negative Interest Rate Policies (NIRP). Key definitions, formulas, and exam tips.
  • Supply‐Side Economics and the Laffer Curve
    Supply‐Side Economics and the Laffer Curve (CFA Level 1): Foundations of Supply-Side Economics, Core Policy Levers, and Introducing the Laffer Curve. Key definitions, formulas, and exam tips.
• Chapter 8: Economic Growth and Development
  Chapter 8: Economic Growth and Development (CFA Level 1): Key concepts, definitions, and exam tips with practical examples. Use it to reinforce intuition and avoid common pitfalls.
  • Factors of Growth (Labor, Capital, Productivity)
    Factors of Growth (Labor, Capital, Productivity) (CFA Level 1): Labor as a Driver of Economic Growth, Capital Accumulation and Deepening, and Productivity as the Real Engine. Key definitions, formulas, and exam tips.
  • Growth Theories (Classical, Neoclassical, Endogenous)
    Growth Theories (Classical, Neoclassical, Endogenous) (CFA Level 1): Classical Growth Theory, Neoclassical Growth Theory, and Diminishing Returns and the Steady State. Key definitions, formulas, and exam tips.
  • Human Capital, Technology, and Innovation
    Human Capital, Technology, and Innovation (CFA Level 1): Role of Human Capital, Skill-Biased Technological Change, and Technology as a Growth Driver. Key definitions, formulas, and exam tips.
  • Demographics and Growth
    Demographics and Growth (CFA Level 1): Demographic Transition, Age Structures and Dependency Ratios, and Population Growth, Labor Force, and Capital Accumulation. Key definitions, formulas, and exam tips.
  • Barriers to Economic Development
    Barriers to Economic Development (CFA Level 1): Governance and Political Stability, Corruption and Weak Rule of Law, and Low Capital Formation. Key definitions, formulas, and exam tips.
  • Environmental and Sustainability Considerations
    Environmental and Sustainability Considerations (CFA Level 1): Importance of Externalities, Sustainable Development and Growth, and Environmental Kuznets Curve (EKC). Key definitions, formulas, and exam tips.
  • Institutional Factors in Economic Development
    Institutional Factors in Economic Development (CFA Level 1): Why Institutions Matter for Economic Development, Legal Frameworks, Property Rights, and Governance, and Stable Monetary and Fiscal Institutions. Key definitions, formulas, and exam tips.
  • Role of Infrastructure in Economic Development
    Role of Infrastructure in Economic Development (CFA Level 1): Defining Infrastructure and Its Key Sectors, Lowering Costs and Facilitating Trade, and Synergy Between Infrastructure and Human Capital. Key definitions, formulas, and exam tips.
  • Absolute vs. Conditional Convergence Debate
    Absolute vs. Conditional Convergence Debate (CFA Level 1): Absolute Convergence: The Theory, Power of Diminishing Returns, and Critiques and Reality Checks. Key definitions, formulas, and exam tips.
  • Measuring and Comparing Living Standards (HDI, Alternative Welfare Indicators)
    Measuring and Comparing Living Standards (HDI, Alternative Welfare Indicators) (CFA Level 1): Assessing Living Standards Beyond GDP, Human Development Index (HDI), and Why HDI Adds Value. Key definitions, formulas, and exam tips.
• Chapter 9: Effects of Regulations
  Chapter 9: Effects of Regulations (CFA Level 1): Key concepts, definitions, and exam tips with practical examples. Use it to reinforce intuition and avoid common pitfalls.
  • Regulatory Frameworks and Governance
    Regulatory Frameworks and Governance (CFA Level 1): Defining Regulatory Frameworks, Role of Governance, and Governance Mechanisms. Key definitions, formulas, and exam tips.
  • Competition Policy and Antitrust
    Competition Policy and Antitrust (CFA Level 1): Purpose of Competition Policy, Key Concepts in Antitrust, and Monopolization. Key definitions, formulas, and exam tips.
  • Consumer Protection and Externalities
    Consumer Protection and Externalities (CFA Level 1): Consumer Protection: Safeguarding Market Participants, Rationale for Consumer Protection, and Core Components of Consumer Protection Regulatory Frameworks. Key definitions, formulas, and exam tips.
  • Costs versus Benefits of Regulation
    Costs versus Benefits of Regulation (CFA Level 1): Rationale for Cost-Benefit Analysis, Direct Costs of Regulation, and Indirect Costs of Regulation. Key definitions, formulas, and exam tips.
  • Regulatory Capture and Challenges
    Regulatory Capture and Challenges (CFA Level 1): Defining Regulatory Capture, Forms of Regulatory Capture, and Direct Capture. Key definitions, formulas, and exam tips.
  • International Regulatory Harmonization
    International Regulatory Harmonization (CFA Level 1): Defining Harmonization and Its Goals, Drivers Behind International Harmonization, and Role of Supranational Organizations. Key definitions, formulas, and exam tips.
  • Mitigating Systemic Risk through Regulation
    Mitigating Systemic Risk through Regulation (CFA Level 1): Defining Systemic Risk, Key Moments in History, and Macroprudential Regulation vs. Microprudential Regulation. Key definitions, formulas, and exam tips.
  • Shadow Banking and Non-Bank Financial Regulations
    Shadow Banking and Non-Bank Financial Regulations (CFA Level 1): Definition of Shadow Banking, Understanding Non-Bank Financial Institutions, and Key Risks in Shadow Banking. Key definitions, formulas, and exam tips.
  • Financial Innovation and Regulatory Challenges
    Financial Innovation and Regulatory Challenges (CFA Level 1): Importance of Financial Innovation, Key Drivers of Financial Innovation, and Regulatory Gaps and Challenges. Key definitions, formulas, and exam tips.
  • Political Economy and Public Choice Theory
    Political Economy and Public Choice Theory (CFA Level 1): Political Economy in Context, Foundations of Public Choice Theory, and Key Insights. Key definitions, formulas, and exam tips.
• Chapter 1: Economic Analysis and Setting Capital Market Expectations
  Chapter 1: Economic Analysis and Setting Capital Market Expectations (CFA Level 1): Key concepts explained with clear definitions, formulas, and exam-focused examples.
  • Approaches to Macroeconomic Forecasting
    Approaches to Macroeconomic Forecasting (CFA Level 1): Role of Macroeconomic Forecasting in Capital Market, Key Approaches to Macroeconomic Forecasting, and Econometric Models. Key definitions, formulas, and exam tips.
  • Top-Down versus Bottom-Up Analysis
    Top-Down versus Bottom-Up Analysis (CFA Level 1): Macro Approach: Top-Down Analysis, Advantages of Top-Down Analysis, and Disadvantages of Top-Down Analysis. Key definitions, formulas, and exam tips.
  • Leading Economic Indicators and Data Sources
    Leading Economic Indicators and Data Sources (CFA Level 1): Key Leading Indicators, Data Sources, and Government Agencies. Key definitions, formulas, and exam tips.
  • Scenario Analysis and Sensitivity Analysis in Economic Forecasting
    Scenario Analysis and Sensitivity Analysis in Economic Forecasting (CFA Level 1): Defining Scenario Analysis, Why Scenario Analysis Matters, and Designing Effective Scenarios. Key definitions, formulas, and exam tips.
  • Integrating Economic Analysis with Investment Strategy
    Integrating Economic Analysis with Investment Strategy (CFA Level 1): Role of Macroeconomic Insights, Strategic Asset Allocation, and Tactical Asset Allocation. Key definitions, formulas, and exam tips.
  • Cyclical Analysis for Asset Return Forecasting
    Cyclical Analysis for Asset Return Forecasting (CFA Level 1): Understanding the Business Cycle, Mapping the Business Cycle to Asset Classes, and Equities. Key definitions, formulas, and exam tips.
  • Using Big Data and Machine Learning in Economic Forecasting
    Using Big Data and Machine Learning in Economic Forecasting (CFA Level 1): Big Data: The New Frontier, Defining Big Data, and Real-Time Payments and Credit Card Data. Key definitions, formulas, and exam tips.
  • Model Uncertainty and Forecast Accuracy
    Model Uncertainty and Forecast Accuracy (CFA Level 1): Concept of Model Risk, Uncertainty in Economic Relationships, and Sources of Forecast Errors. Key definitions, formulas, and exam tips.
• Chapter 11: Effects of Geopolitics on Economies and Investment Markets
  Chapter 11: Effects of Geopolitics on Economies and Investment Markets (CFA Level 1): Key concepts explained with clear definitions, formulas, and exam-focused examples.
  • Geopolitics and Globalization
    Geopolitics and Globalization (CFA Level 1): Defining Geopolitics, Globalization as an Economic Force, and Historical Context. Key definitions, formulas, and exam tips.
  • Trade Disputes, Sanctions, and Tariff Wars
    Trade Disputes, Sanctions, and Tariff Wars (CFA Level 1): Nature of Trade Disputes, Tariff Wars, and Economic and Market Consequences. Key definitions, formulas, and exam tips.
  • Political Risk and Regulatory Uncertainty
    Political Risk and Regulatory Uncertainty (CFA Level 1): Defining Political Risk, Types of Political Risk, and Regulatory Uncertainty. Key definitions, formulas, and exam tips.
  • Assessing Geopolitical Risk and Economic Vulnerabilities
    Assessing Geopolitical Risk and Economic Vulnerabilities (CFA Level 1): Frameworks for Assessing Geopolitical Risk, Vulnerable Sectors, and Macroeconomic Indicators. Key definitions, formulas, and exam tips.
  • Role of International Organizations (IMF, World Bank, WTO)
    Role of International Organizations (IMF, World Bank, WTO) (CFA Level 1): International Monetary Fund (IMF), Mandate, and Key Functions. Key definitions, formulas, and exam tips.
  • Tools of Geopolitics and Diplomacy
    Tools of Geopolitics and Diplomacy (CFA Level 1): Diplomatic Negotiations, Economic Statecraft, and Tariffs, Quotas, and Embargoes. Key definitions, formulas, and exam tips.
  • Energy Security and Commodity Geopolitics
    Energy Security and Commodity Geopolitics (CFA Level 1): Evolving Role of Energy Resources, Resource Nationalism, and OPEC and Other Cartels. Key definitions, formulas, and exam tips.
  • Digital Currencies and the Global Financial System
    Digital Currencies and the Global Financial System (CFA Level 1): Basic Definition and Growth, Geopolitical Dimensions, and Monetary Sovereignty. Key definitions, formulas, and exam tips.
• Chapter 12: Applications of Economic Factors in the Investment Process
  Chapter 12: Applications of Economic Factors in the Investment Process (CFA Level 1): Key concepts explained with clear definitions, formulas, and exam-focused examples.
  • Linking Macroeconomic Data to Asset Valuation
    Linking Macroeconomic Data to Asset Valuation (CFA Level 1): Role of Macroeconomic Indicators in Valuation, GDP Growth, and Inflation and Price Stability. Key definitions, formulas, and exam tips.
  • Sector Rotation and Cyclical Indicators
    Sector Rotation and Cyclical Indicators (CFA Level 1): Understanding the Concept of Sector Rotation, Key Cyclical Indicators, and Purchasing Managers’ Index (PMI). Key definitions, formulas, and exam tips.
  • Monetary/Fiscal Policy Turning Points and Portfolio Decisions
    Monetary/Fiscal Policy Turning Points and Portfolio Decisions (CFA Level 1): Monitoring Central Bank Signals (Monetary Policy) and Tools for Recognizing Monetary Policy Turning Points. Key definitions, formulas, and exam tips.
  • Using Macroeconomic Indicators for Tactical Asset Allocation
    Using Macroeconomic Indicators for Tactical Asset Allocation (CFA Level 1): Understanding Tactical Asset Allocation, Role of Macroeconomic Indicators, and Interdependency Among Asset Classes. Key definitions, formulas, and exam tips.
  • Diversification and Economic Cycles
    Diversification and Economic Cycles (CFA Level 1): Economic Cycles and Correlation Patterns, Why Correlations Increase in Downturns, and Sectors and the Business Cycle. Key definitions, formulas, and exam tips.
  • Scenario Analysis and Managing Economic Risks
    Scenario Analysis and Managing Economic Risks (CFA Level 1): Core Ideas Behind Scenario Analysis, Constructing Plausible Scenarios, and Identifying Macroeconomic Drivers. Key definitions, formulas, and exam tips.
  • Macroeconomic Surprises and Asset Performance
    Macroeconomic Surprises and Asset Performance (CFA Level 1): Measuring Surprises: Economic Surprise Indices, Expectations and Knee-Jerk Reactions, and Short-Term vs. Longer-Term Shifts. Key definitions, formulas, and exam tips.
  • Business Sentiment Surveys and Market Expectations
    Business Sentiment Surveys and Market Expectations (CFA Level 1): Importance of Business Sentiment in Economic and Investment and Key Types of Business Sentiment Surveys. Key definitions, formulas, and exam tips.
  • Nowcasting and Real-Time Indicators
    Nowcasting and Real-Time Indicators (CFA Level 1): Key Concepts and Benefits, Defining Nowcasting, and High-Frequency Data. Key definitions, formulas, and exam tips.