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Understanding What the Fed is Thinking - Monetary Policy Explained
The Fed policy is more nuanced than the average classroom teaches. It is not either contractionary or expansionary; instead, it can be more restrictive or less restrictive OR more accommodative or less accommodative OR neutral. We need to think of the Fed as either having their foot on the brake pedal or the gas pedal and their foot can either be pressing down or letting up on that pedal. Confused??? Watch the video...you won't be any longer.
This video is made for 1st year college students or AP/IB Economics students. It focuses on foundational economic concepts.
Переглядів: 137

Відео

How Interest Rates Impact Exchange Rates and Net Exports
Переглядів 8914 днів тому
This video explains how interest rate changes impact a country's balance of payments, exchange rates, and net exports. In other words, it explores how interest rate changes impact global flows of financial capital. This video is made for 1st year college students or AP/IB Economics students. It focuses on foundational economic concepts.
How Interest Rate Changes Play Out in the Open Economy
Переглядів 9214 днів тому
Interest rate changes are very important for global financial capital flows. This video explores how interest rate changes play out in an open economy...i.e., how they affect exchange rates, a country's balance of payments, and next exports. This video is made for 1st year college students or AP/IB Economics students. It focuses on foundational economic concepts.
A Welfare Analysis of A Firm with a Monopoly
Переглядів 7628 днів тому
Monopoly power, also called market power, results in dead-weight loss. The power monopolist's have over price results in them producing less than the optimum quantity. This video shows students how to find the consumer surplus, producer surplus, and deadweight loss associated with monopoly power. This video is made for 1st year college students or AP/IB Economics students. It focuses on foundat...
AVC, MC, and the Supply Curve: The Minimum Price Needed to Supply Goods
Переглядів 7828 днів тому
A firms supply curve is the portion of the marginal cost curve that lies above the average variable cost curve. Therefore, the lowest point on the AVC curve (i.e., minimum AVC) represents the minimum price required to supply a good. The relationship between the price (i.e. the per-unit revenue) and the average variable costs (AVC) is of critical importance. A firm will not supply any of a good,...
The Importance of Prices: How They Coordinate Economic Activity
Переглядів 57Місяць тому
In a market based economy, prices are the coordinating function. Prices dictate where are scarce resources are allocated. In other words, prices direct resources to the production of different goods and services. Economic students need to see the importance of prices. In a market based economy, prices replace the central planner in directing resources to the production of goods and services. An...
Changes in Supply & Demand vs Changes in Quantity Supplied & Quantity Demanded
Переглядів 194Місяць тому
Students taking a first year college economics course will be told they most differentiate between changes in "supply" and changes in "quantity supplied" as well as changes in "demand" and changes in "quantity demanded". In this video, we will explain the distinction, and, more importantly, explain why it is so important that we differentiate between these terms. Hold your hat, as you are about...
The Minimum Wage: A Deep Dive
Переглядів 127Місяць тому
Stay wedded to "the policy goal", but don't stay wedded to any specific policy. The minimum wage is a specific policy used to accomplish the policy goal of helping people earn a livable wage. The "goal" of increasing peoples income makes a lot of sense in a society with high levels of income inequality. However there are many different policies to accomplish this goal. The minimum wage is just ...
R-star and Restrictive Monetary Policy (In the Short-Run and Long-Run)
Переглядів 672 місяці тому
How does restrictive monetary policy work? Why does the Fed eventually need to normalize when they are following restrictive monetary policy? This video answers these questions and much more. This video is made for 1st year college students or AP/IB Economics students. It focuses on foundational economic concepts.
How Automatic Stabilizers Work (Fiscal Policy)
Переглядів 422 місяці тому
It is important to understand the difference between discretionary and non-discretionary fiscal policies. Non-discretionary fiscal policies provide countercyclical forces without policymakers needing to take action. These non-discretionary fiscal policies are known as automatic stabilizers (or built in stabilizers). Basically, automatic stabilizers are associated with how tax revenues and trans...
Accommodative Monetary Policy and r-start (Analyzing Fed Policy using the AS/AD Model)
Переглядів 513 місяці тому
What is accommodative monetary policy? This video explains it. We focused on the relationship between the Fed's targeted rate and the r-star interest rate. The r-star interest rate is the neutral rate of interest. It is theoretically the rate of interest for the Fed's policy rate (the Federal Funds Rate) that will neither cause the inflation rate (or unemployment rate) to increase or decrease. ...
How the Fed Uses r-star to Navigate the the Soft Landing (Monetary Policy and the AS/AD Model)
Переглядів 1013 місяці тому
What does it mean for the Fed to try to navigate the soft landing? This video answers this question. This video also explores teaching monetary policy using the AS/AD model in new ways.
Restrictive Monetary Policy and the Neutral Rate (Using the AS/AD Model)
Переглядів 1263 місяці тому
r-star is the neutral rate of interest. We should assess the Fed's targeted rate relative to the r-star rate of interest. When the Fed's targeted rate is above r-star, the Fed is being restrictive. We look at Restrictive Monetary Policy through the lens of the AS/AD Model. BTY, restrictive monetary policy is often referred to as contractionary monetary policy.
How Markets (Prices) Coordinate Economics Activity (The Positives of Markets)
Переглядів 2537 місяців тому
Prices Are Signals that Coordinate Economic Activity: In markets, price flexibility is the key to resolving any shortages or surpluses. If prices are allowed to adjust to changes in either market supply or market demand there will be no long-term shortages or surpluses. The price adjustment will ensure Qd = Qs for a product in the long-term. Price flexibility is the key to allowing markets to c...
Price Ceilings: Embracing the Complexities (Example: Rent Control)
Переглядів 1897 місяців тому
Unregulated markets are markets where prices are allowed to adjust to clear shortages or surpluses. In other words, if prices are allowed to adjust to market changes (changes in either market supply or market demand) there will be no long term shortages or surpluses. Binding price ceilings distort price signals, and since they keep prices artificially low they discourage supply and encourage a ...
Why GDP Is an Important Macroeconomic Measurement: A Defense of GDP
Переглядів 957 місяців тому
Why GDP Is an Important Macroeconomic Measurement: A Defense of GDP
Getting Market Actors to Internalize a Negative Externality
Переглядів 2567 місяців тому
Getting Market Actors to Internalize a Negative Externality
Utility Maximization: The Optimal Consumption Bundle (Topic: Consumer Choice)
Переглядів 3098 місяців тому
Utility Maximization: The Optimal Consumption Bundle (Topic: Consumer Choice)
How Interest Rates Affect All Asset Prices (or Why Fed Actions Impact the Stock Market)
Переглядів 3178 місяців тому
How Interest Rates Affect All Asset Prices (or Why Fed Actions Impact the Stock Market)
Why the SRAS Curve is Upward Sloping (A Deep Dive)
Переглядів 5679 місяців тому
Why the SRAS Curve is Upward Sloping (A Deep Dive)
The Phillips Curve: The Process of Disinflation
Переглядів 3649 місяців тому
The Phillips Curve: The Process of Disinflation
Is the Phillips Curve A Policy Choice? (The Phillips Curve and the Expected Inflation Rate)
Переглядів 2439 місяців тому
Is the Phillips Curve A Policy Choice? (The Phillips Curve and the Expected Inflation Rate)
An Introduction to the Phillips Curve: Covering the Basics (Part 1)
Переглядів 3939 місяців тому
An Introduction to the Phillips Curve: Covering the Basics (Part 1)
Don't Fight the Fed...Unless You Are the US Government (includes a review of 20+ years of data)
Переглядів 82010 місяців тому
Don't Fight the Fed...Unless You Are the US Government (includes a review of 20 years of data)
An Introduction to Bonds: For Economic Students
Переглядів 34910 місяців тому
An Introduction to Bonds: For Economic Students
How an Open Market Sale Can Lead to Money Destruction
Переглядів 17710 місяців тому
How an Open Market Sale Can Lead to Money Destruction
How Withdrawals Can Lead to Money Destruction - Limited Reserve Framework
Переглядів 21910 місяців тому
How Withdrawals Can Lead to Money Destruction - Limited Reserve Framework
The Reserve Ratio and the Required Reserve Ration: The Money Multiplier
Переглядів 91411 місяців тому
The Reserve Ratio and the Required Reserve Ration: The Money Multiplier
Aggregate Supply: The Relationship Between SRAS and LRAS
Переглядів 55911 місяців тому
Aggregate Supply: The Relationship Between SRAS and LRAS
How Government Deficits Have a Crowding Out Effect
Переглядів 32211 місяців тому
How Government Deficits Have a Crowding Out Effect

КОМЕНТАРІ

  • @geoguy001
    @geoguy001 День тому

    is this 1% real neutral rate related to the monetarist idea of having the expansion of the MS match the rate of economic growth?

  • @I_D_K_
    @I_D_K_ День тому

    I have my unit 2 test today and I was really confused over this topic, but now I know ~Thank you so much!!

  • @hamidalam3472
    @hamidalam3472 5 днів тому

    how can an explanation be so good!!

  • @dekafs2469
    @dekafs2469 8 днів тому

    I think the best way to understand this is: if you are the owner of the one currency, are you any better off purchasing another currency vs sticking to your own? If your currency depreciates and the price of a basket of goods in your country in relation to another doesn't change, then you get less benefit by converting to the other currency. But if your currency depreciates WHILE inflation increases faster in your country relative to another country (e.g. your currency can buy half as much of another currency, but inflation doubles) => you are no more or less better off converting currencies and therefore the real exchange rate stays the same.

  • @GuanxiChen-fg4ky
    @GuanxiChen-fg4ky 9 днів тому

    thank you sir, you are so handsome and cool, knowledgeable

  • @CatherineTang-he2ip
    @CatherineTang-he2ip 10 днів тому

    gosh i love your videos! great tyo see a fresh one! have stayed tuned for more than a year!! very very clear and practical videos

  • @auraskhanal6852
    @auraskhanal6852 13 днів тому

    Really really well explained. Thank you so much

  • @geoguy001
    @geoguy001 14 днів тому

    Whats Pm and FM?

  • @debuggio
    @debuggio 14 днів тому

    I'm your biggest fan❤

  • @RiponChoudhury-j5e
    @RiponChoudhury-j5e 15 днів тому

    incredible!! it would be more helpful if you slow down in making the things to understand

  • @pulkeshsharma6603
    @pulkeshsharma6603 21 день тому

    Brilliant teacher

  • @pulkeshsharma6603
    @pulkeshsharma6603 21 день тому

    Thankyou so much sir. I have been trying to understand this topic from alot teachers, but ended with your explanation. That is really very good

  • @AshleyWest-jb9or
    @AshleyWest-jb9or 23 дні тому

    Best video on import quota. Really helped me a lot❤❤

  • @joannawood4676
    @joannawood4676 24 дні тому

    Makes sense

  • @Savvyste
    @Savvyste 25 днів тому

    Thank you - this really helped me understand after class.

  • @diwakarsingh5056
    @diwakarsingh5056 27 днів тому

    Thank you so much!

  • @kiyhh977
    @kiyhh977 27 днів тому

    I'm an Indian , I was not able to understand this concept for so long,,,,but you made it just a cakewalk,,,,,,thankyou so much sir ❤

  • @nickjacobs2846
    @nickjacobs2846 29 днів тому

    another great explanation

  • @nickjacobs2846
    @nickjacobs2846 29 днів тому

    Excellent video

  • @RiponChoudhury-j5e
    @RiponChoudhury-j5e Місяць тому

    excellent...@econbusters Can you share a video comparing classical and Keynesian model

  • @minghei2010
    @minghei2010 Місяць тому

    😢😮😢😮我遇到一個莊小姐,在金管會銀行局,她未婚,想跟我的親戚結婚,只是她不肯回答應提準備率

  • @pradyumnsharma2700
    @pradyumnsharma2700 Місяць тому

    in case nobody told u today, u r a legend

  • @RiponChoudhury-j5e
    @RiponChoudhury-j5e Місяць тому

    Absolutely fabulous explanation.

  • @edenshuuya4723
    @edenshuuya4723 Місяць тому

    Wow, this was an incredible explanation

  • @liliansinyangwe9661
    @liliansinyangwe9661 Місяць тому

    Excellent explanations!

  • @u.sbanban
    @u.sbanban Місяць тому

    youtube needs to start curating the content available somehow cause what am I even doing here 🤣

  • @cherry.berry2
    @cherry.berry2 Місяць тому

    This was really confusing and I want able to find any good explanations on it. Your videos helped a lot! Thanks!

  • @nofmxc
    @nofmxc Місяць тому

    Amazing video! Thanks for making this explanation.

  • @valentinavanegas6640
    @valentinavanegas6640 Місяць тому

    This is a note for me, explaining to me the example of the prisoners: There is only one accurate answer: one of the prisoners will guess the color of the hat, if the other two prisoners have the R hats. 1) P2 and P3 do not have R, so P1 decides not to guess. P1 could have seen on P2 and P3 the B hat; thus P1 could have the other B but also could have one of the R, so decided not to guess (one possibility, the other possibility is that P2 and P3 have different colors and happen the same) 2) P2 decides not to guess; because P3 has a different color from the most accurate answer: R. 'cause if P3 had the R hat, P2 would have the B hat and for that P1 decided not to guess. 3) P3 knows that P1 and P2 did not see the R hat in the other two prisoners (the most accurate answer). But also know that the P2 knew that, and if P2 decided not to guess and not to see the P1's color of the hat, is because definitely P3 does not have the R hat. Saludos desde Colombia.

  • @smarttv2316
    @smarttv2316 Місяць тому

    thankyou , love from India

  • @pristhinakm2954
    @pristhinakm2954 Місяць тому

    Thankyou so much for the explanation Presented the same in class , absolute hit❤

  • @nathanjames3348
    @nathanjames3348 2 місяці тому

    Great video, thank you! Perhaps i will grasp all this on the 48th viewing...

  • @amritaanshnarain7524
    @amritaanshnarain7524 2 місяці тому

    beautifully explained

  • @wza223-fo3mc
    @wza223-fo3mc 2 місяці тому

    Bahamas 😂

  • @martinkabinga4785
    @martinkabinga4785 2 місяці тому

    This is good

  • @Ana-Nas
    @Ana-Nas 2 місяці тому

    Wow, one of the best economics videos; I did not realize I should draw the vertical lines up to the lines... wow

  • @Raine-q2e
    @Raine-q2e 2 місяці тому

    a question: After the per unit tax is added, didn't the optimum quantity change to the point that S(after tax) curve intersect the demand curve? Why the opt point didn't change?

  • @hr_orb
    @hr_orb 2 місяці тому

    great video on import quota i have ever seen!!!

  • @nikhilreddy5013
    @nikhilreddy5013 2 місяці тому

    thanks so much for these videos! it's helped me so much

  • @jawwadashraf6184
    @jawwadashraf6184 2 місяці тому

    Very good

  • @k.armanj
    @k.armanj 2 місяці тому

    that's great video , goooooooooood job man

  • @abhinavrathore3856
    @abhinavrathore3856 2 місяці тому

    It's helpful

  • @hannahdettling3112
    @hannahdettling3112 2 місяці тому

    Love the energy, thanks for the great video🎉

  • @gb-dt3vk
    @gb-dt3vk 3 місяці тому

    Interested in teaching? Speak a little slower.

  • @yourmuse0602
    @yourmuse0602 3 місяці тому

    Such a precise explanation, needed help since the text in salvatore was kind of indirect here

  • @deleokuwobi2491
    @deleokuwobi2491 3 місяці тому

    Exceptional; Thank you!

  • @IsacRajan97
    @IsacRajan97 3 місяці тому

    Good Explanation!! It helped.

  • @rishiparikh698
    @rishiparikh698 3 місяці тому

    Absolutely amazing. Subscribed and liked!

  • @mmaddison73
    @mmaddison73 3 місяці тому

    at 11:26 why is the MR slope automatically half the market demand slope?

  • @mmaddison73
    @mmaddison73 3 місяці тому

    definitely worth your time to watch