Christopher D. Piros & Jerald E. Pinto 
Economics for Investment Decision Makers 
Micro, Macro, and International Economics, Workbook

The economics background investors need to interpret global
economic news distilled to the essential elements: A tool of choice
for investment decision-makers.

Written by a distinguished academics and practitioners selected
and guided by CFA Institute, the world’s largest association
of finance professionals, Economics for Investment Decision
Makers is unique in presenting microeconomics and
macroeconomics with relevance to investors and investment analysts
constantly in mind. The selection of fundamental topics
is comprehensive, while coverage of topics such as international
trade, foreign exchange markets, and currency exchange rate
forecasting reflects global perspectives of pressing investor
importance.

* Concise, plain-English introduction useful to investors and
investment analysts

* Relevant to security analysis, industry analysis, country
analysis, portfolio management, and capital market strategy

* Understand economic news and what it means

* All concepts defined and simply explained, no prior background
in economics assumed

* Abundant examples and illustrations

* Global markets perspective

Table of Content

PART I Learning Outcomes, Summary Overview, and Practice Problems

CHAPTER 1 Demand and Supply Analysis: Introduction 3

Learning Outcomes 3

Summary Overview 3

Practice Problems 5

CHAPTER 2 Demand and Supply Analysis: Consumer Demand 11

Learning Outcomes 11

Summary Overview 11

Practice Problems 12

CHAPTER 3 Demand and Supply Analysis: The Firm 15

Learning Outcomes 15

Summary Overview 15

Practice Problems 16

CHAPTER 4 The Firm and Market Structures 23

Learning Outcomes 23

Summary Overview 23

Practice Problems 24

CHAPTER 5 Aggregate Output, Prices, and Economic Growth 29

Learning Outcomes 29

Summary Overview 29

Practice Problems 32

CHAPTER 6 Understanding Business Cycles 39

Learning Outcomes 39

Summary Overview 39

Practice Problems 41

CHAPTER 7 Monetary and Fiscal Policy 45

Learning Outcomes 45

Summary Overview 45

Practice Problems 47

CHAPTER 8 International Trade and Capital Flows 53

Learning Outcomes 53

Summary Overview 53

Practice Problems 55

CHAPTER 9 Currency Exchange Rates 61

Learning Outcomes 61

Summary Overview 61

Practice Problems 63

CHAPTER 10 Currency Exchange Rates: Determination and Forecasting 67

Learning Outcomes 67

Summary Overview 68

Practice Problems 71

CHAPTER 11 Economic Growth and the Investment Decision 77

Learning Outcomes 77

Summary Overview 77

Practice Problems 79

CHAPTER 12 Economics of Regulation 87

Learning Outcomes 87

Summary Overview 87

Practice Problems 88

PART II Solutions

CHAPTER 1 Demand and Supply Analysis: Introduction 93

Solutions 93

CHAPTER 2 Demand and Supply Analysis: Consumer Demand 97

Solutions 97

CHAPTER 3 Demand and Supply Analysis: The Firm 99

Solutions 99

CHAPTER 4 The Firm and Market Structures 101

Solutions 101

CHAPTER 5 Aggregate Output, Prices, and Economic Growth 103

Solutions 103

CHAPTER 6 Understanding Business Cycles 107

Solutions 107

CHAPTER 7 Monetary and Fiscal Policy 109

Solutions 109

CHAPTER 8 International Trade and Capital Flows 111

Solutions 111

CHAPTER 9 Currency Exchange Rates 115

Solutions 115

CHAPTER 10 Currency Exchange Rates: Determination and Forecasting 119

Solutions 119

CHAPTER 11 Economic Growth and the Investment Decision 123

Solutions 123

CHAPTER 12 Economics of Regulation 127

Solutions 127

About the CFA Program 129

About the author

CHRISTOPHER D. PIROS, Ph D, CFA, is the Managing
Director of Investment Strategy and Chairman of the Investment
Policy Committee at Hawthorn, a member of the PNC Financial
Services Group, Inc., which is dedicated to serving the needs of
individuals and families with investable assets in excess of $20
million. Prior to joining PNC, Mr. Piros served on the team
responsible for the curriculum underlying the Chartered Financial
Analyst® designation. He also has served as Director of
Investment Strategy & Portfolio Management at Prudential
Investments LLC, the wealth management services arm of Prudential
Financial. He was a global fixed-income portfolio manager and head
of fixed-income quantitative analysis at MFS Investment
Management.

JERALD E. PINTO, Ph D, CFA, is Director, Curriculum
Projects, in the education division of the CFA Institute. Prior to
joining CFA Institute, he consulted with corporations, foundations,
and partnerships in investment planning, portfolio analysis,
valuation, and quantitative analysis. Pinto also worked in the
investment and banking industries in New York, and taught finance
at NYU Stern School of Business. He holds an MBA from Baruch
College, a Ph D in finance from the Stern School, and is a member of
CFA Virginia.

CFA INSTITUTE is a global, not-for-profit organization
comprising the world’s largest association of investment
professionals. With over 100, 000 members, and regional societies
around the world, CFA Institute is dedicated to developing and
promoting the highest educational, ethical, and professional
standards in the investment industry. CFA Institute offers a range
of educational and career resources, including the Chartered
Financial Analyst (CFA) and the Certificate in Investment
Performance Measurement (CIPM) designations, and is a leading voice
on global issues of fairness, market efficiency, and investor
protection.