Framework and Macro Considerations (2025 Level III CFA® Exam - Reading 1)

[@FPimba]

This video is underrated. :) Can you please expand on your comment at 01:21:38 "which is an expansionary policy" whilst the slide reads ""reversing the expansionary policy"?

[@danielbelotto1]

He made a mistake! When the government buys its own currency to prevent depreciation of its currency it leads to a contractionary policy. Here is why: Government buys its own currency -> reduces the supply of its currency -> strenghens its currency value Consequences: exports are more expensive for foreign buyers, leading to a reduce in exports and consequently in economic activity

[@dinarajavadova5940]

Extremely helpful! Thank you!

[@kamranshahzad2156]

Excellent

[@agustinarcusa7696]

"You didnt have to worry about inflation. " I am from argentina 😅