CFA Level 2 Economics Overhaul necessary, material, completely

Windjammer

The CFA Institute has completely overhauled CFA Level 2 Economics.  In the past CFA Level 2 Econ consisted of the most relevant readings that could be found in Economics text books… hence the perspective was that of an economist and not  necessary an analyst.  I also felt that there was lot of overlap across readings.  The new material has clearly been written by analysts for analysts.  It also builds very well on the Level 1 material which was upgraded (for the better) last year.  
I finished creating the Econ video lectures last week and have to say I really enjoyed R14 Currency Exchange Rates and R15 Economic Growth.  However, R16 Economics of Regulation was bit of a drag.  It could have been made more interesting.  Fortunately the reading on Regulation is relatively short and the examples are decent.  Learn the main points, apply some common sense and you’ll be able to nail the questions.  Unless you want to be a regulator when you grow up I’d not get too hung up with details.
Overall I’m sure you’ll enjoy the topic… and for L2 re-takers it will be a healthy change.
Good luck with your studies and I hope you are starting early.

dotamasta

Regarding “Economics of Regulation,” remember that you might be well be called upon as an analyst to estimate the economic effects on a firm that may want to lobby or otherwise come out for or against some proposed regulation, or even make plans in case some piece of proposed regulatory legislation should pass or fail.