A Layman's Guide to the U.S. Economy: Demystifying Economic Indicators (Part 2 - Computing the GDP) Premium class

Mikesh Shah, A Layman's Guide to the U.S. Economy

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10 Videos (57m)
    • 1 GDP Section Intro

    • 2 GDP compute

    • 3 GDP basic definitions

    • 6 GDP Government Spending

    • 4 GDP Households&Firms

    • 5 GDP Savings&Investments

    • 7 GDP Net Exports

    • 8 GDP US Historical Context

    • 9 GDP Growth Rates Computations

    • 10 GDP Quarterly Report


About This Class

"Understanding Markets" is one of the technical skill talked about by Robert Kiyosaki in his book "Rich Dad, Poor Dad". In order to "understand markets" we need to make the connections between the economy, financial markets and the central bank's monetary policy. The goal of this class is to provide you with the tools necessary to make these connections. By understanding macroeconomic indicators, their impact on financial markets and the reaction of the central bank you will be able to better predict the direction of the economy, inflation and ultimately the financial markets.

In this second part of "A Layman's Guide to the U.S. Economy: Demystifying Economic Indicators" we will compute the Gross Domestic Product of a hypothetical economy, compute the real and nominal GDP, growth rates and understand the Quarterly Gross Domestic Product report published by the US Bureau of Economic Analysis at the Department of Commerce. We will understand the components of GDP - consumption expenditure, gross private investment spending, government spending and net exports. We will study how through the help of a hypothetical economy and an economic map how GDP equates to C+I+G+(EX-IM). Finally we take a closer look at the Quarterly GDP report published by the BEA and using the knowledge gained from part 1, make the connection between the GDP report and the financial markets. 







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Mikesh Shah

A Layman's Guide to the U.S. Economy

Studied Bachelor of Computer Engineering and a MBA from Queen's University Canada. Worked 8 years in the investment banking division trading primarily in the foreign exchange and bond markets. Spent 11 years in Oracle Financial Services Software Ltd as an IT and banking consultant. During the consulting tenure I worked in various projects -  implemented the Sarbanes-Oxley Act - internal controls at the IMF in Washington, built trading systems at an investment bank in London for the algorithmic trading desk, implemented a complex core banking software system at banks such as Bank of Montreal, Wells Fargo.