Chapter 2: Macroeconomic Analysis, Exchange Rates, and Policy Implications

In this section

• Economic Growth and Productivity Analysis
  Explore major growth theories, convergence hypotheses, and the drivers of productivity that shape modern economies and investment opportunities.
• Exchange Rate Determination and Forecasting
  An in-depth exploration of how spot and forward rates are set, the theories behind exchange rate movements, and practical methods for forecasting currency values.
• International Parity Conditions and Economic Balances
  Discover the core principles behind covered and uncovered interest rate parity, purchasing power parity, and how these conditions relate to balance of payments, policy interventions, and currency dynamics.
• Macro Analysis in Sector and Corporate Valuation
  Explore how macroeconomic trends influence sector performance, corporate earnings, and valuation models in a top-down context. Learn practical techniques like scenario and sensitivity analyses, examine specific industry examples, and gain strategic insights for CFA® Level II success.
• Canadian and U.S. Policy Perspectives
  Explore central banking frameworks, fiscal policy contrasts, and regulatory divergences between the United States and Canada. Understand how monetary and fiscal policy decisions influence capital flows, currency values, and macroeconomic stability in both nations.