Economic Growth (2024 Level II CFA® Exam – Learning Module 2)

Level II CFA® Program Video Lessons offered by AnalystPrep

Topic 3 – Economics
Readings 7 – Economic Growth and Investment Decision
0:00 Introduction and Learning Outcome Statements
4:49 LOS: Compare factors favoring and limiting economic growth in developed and developing countries.
6:55 LOS: Describe the relationship between the long-run rate of stock market appreciation and the sustainable growth rate of the economy.
13:05 LOS: Explain why potential GDP and its growth rate matter for equity and fixed income investors.
16:18 LOS: Distinguish between capital deepening investment and technological progress and explain how each affects economic growth and labor productivity.
21:16 LOS: Forecast potential GDP based on growth accounting relations.
23:58 LOS: Explain how natural resources affect economic growth and evaluate the argument that limited availability of natural resources constrains economic growth.
27:41 LOS: Explain how demographics, immigration, and labor force participation affect the rate and sustainability of economic growth.
28:46 LOS: Explain how investment in physical capital, human capital, and technological development affects economic growth.
29:23 LOS: Compare classical growth theory, neoclassical growth theory, and endogenous growth theory.
35:15 LOS: Explain and evaluate convergence hypotheses.
37:36 LOS: Describe the economic rationale for governments to provide incentives to private investment in technology and knowledge.
39:07 LOS: Describe the expected impact of removing trade barriers on capital investment and profits, employment and wages, and growth in the economies involved.

[nickwith-seidelin]

I came across a practice question where they provided us with the factors for technology, capital, and both capital and labour's share. However they also gave population growth, growth due to capital deepening, and growth in labour productivity. In the solution, they used population growth as the factor for labour. Could you explain why?

[carltonbanks]

Funny how the CFA material just completely ignores "developed" countries exploitation of "developing" countries. Especially when it comes to political influence and currency manipulation. Those things are empirical fact at this point. The author's point of view becomes painfully obvious.

[ntcuongct]

dear Friends, I have a question: If the central bank buys USD from a commercial bank, the domestic money supply will increase, increasing inflation, and commercial banks will not be able to lend. So the state bank will attract local currency through OMO channel or what channel to reduce the domestic money supply?. thank you

[HarshGattani__]

Was looking for explanation of the models, did not find any🥲