Economics for Capital Markets
1h 12mBeginner2024-11-01
Authors
Corporate Finance Institute (CFI)
Course details
This course covers critical economic principles that impact financial markets, rather than worry about micro/macro theory. Get an introduction to economic events and find out how to differentiate between economic releases and economic indicators. This course is perfect for anyone who would like to build a strong foundation on economic principles before jumping into financial markets, and is designed to equip anyone who desires to begin a career in areas of finance with the fundamental knowledge of economics.
Learning objectives
Know how economic principles impact financial markets.
Classify and interpret economic releases.
Understand central banks, their goals, and their role in the economy.
Perceive how specific economic events impact specific markets.
Grasp how market practitioners use this information to trade and invest.
Learning objectives
Know how economic principles impact financial markets.
Classify and interpret economic releases.
Understand central banks, their goals, and their role in the economy.
Perceive how specific economic events impact specific markets.
Grasp how market practitioners use this information to trade and invest.
Skills covered
Corporate FinanceFinance and AccountingOne-Off
Concepts
Economics for Capital Markets Overview
- Course introduction
Economic Events
- Indicators vs. releases
- Economic events
- Types of economic events
- Important aspects of economic indicators
- Three classes of economic indicators
- Get to know your market animals
Central Banks
- A quick refresher on central banks
- Foreign currency reserves
- Central banks vs. sovereign wealth funds
- Central bank actions
- What is monetary policy
- How policy rates affect the real world
- Economics for capital markets case study - Black Wednesday
- Economics for capital markets case study - Black Wednesday (continued)
- The federal reserve system
- Fed board of governors and FOMC
- Fed key policy rates
- FOMC statements
- FOMC minutes
- European central bank and key policy rates
- Bank of England and bank rate
- Bank of Japan
- Quantitative easing and yield curve control
- Bank of Japan monetary policy and key rates
- Midway check-in on economics for capital markets
Economic Indicators
- Labor market
- Output GDP, GNP, and balance of payments
- Prices and wages
- Consumption
- Industrial sector
- Purchasing managers' index
- Surveys and housing sector
Trading around Economic Releases
- How economic releases move markets
- How we get these forecasts
- How markets should react vs. how they react in the real world
- How market practitioners trade releases
- How market practitioners trade releases (continued)
Conclusion
- Course summary