Interest Rate and Debt Explained | Economic Concepts you should know (Part 4) | Ayushi Chand
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- Опубліковано 17 січ 2022
- In this mini-series on Everyday Economic Concepts, we discuss 'Interest Rate':
At an individual level - how we earn interest and how we pay interest
At a banking level - how banks function and earn profits
At an economy level - how the Central Bank uses interest rate to manage inflation and growth
We also discuss the Debt and Debt-t0-GDP ratio, and how it acts as an indicator of the stability of any economy, thus, affecting the investor confidence and foreign relations of a country.
Watch this video till the end to understand the concept of 'Interest Rate' and 'Debt' and how these affect the macroeconomic fundamentals of a country.
1:31 What is interest rate?
2:09 Borrowing at a macro level
3:23 Banking system explained
5:30 REPO Rate - tool to manage inflation and growth
7:47 How Monetary Policy works?
11:08 How is Repo Rate decided?
11:58 Government Budget explained
14:18 Debt to GDP Ratio and its impact
17:17 Can we print more money?
18:01 EXERCISE for YOU
18:30 Case Study on India
Watch Part 1 of this Free-Series on Economics (Demand & Supply) here: • 5 Economics concepts t...
Watch Part 2 of this Free-Series on Economics (Inflation) here: • How Inflation affects ...
Watch Part 3 of this Free-Series on Economics (GDP) here: • Understanding GDP (Gro...
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Stay tuned to this video-series, to learn about basic economic concepts, which affect our everyday lives!
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Ayushi Chand is an Indian Economic Service (IES) officer, working with the Central Government of India (Ministry of Finance). She has over 6.5 years of work experience in the fields of finance and public policy.
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Get in touch:
LinkedIn: www.linkedin.com/in/ayushichand
Twitter: / ayushichand
Instagram: ayushichand...
Quora: www.quora.com/profile/Ayushi-...
Those who try/want to understand economics...your video is just 💎
Mam, please start teaching economics from scratch to the advanced level so that we could aware of the economic terms. I highly appreciate the hard work that you put into making the content for your subscribers .
Yeah,
Course on Economics will be very helpful
First of all thanks ma'am for making such awesome videos, I am a first-year undergrad economics student and I regularly watch your videos,
I think Japanese debt is not a problem because most of its debt roughly 90% comprises government bonds, the majority of which is held by the bank of japan i.e. most of it is internal debt since the government controls its own currency, it is not a big issue, unlike other countries such as Sri Lanka in which has a much lower debt to GDP ratio is in a debt crisis as most of its debt is external.
Talking about sustainability, I think it can generate a case of moral hazard as there is no debt ceiling as of how which means it can borrow endlessly
Exactly what i want, really informative. I can see you have done alot of research and made it really interesting!! Do make a video on reverse repo rate,its effects on FD rates, taxes, whats indias current debt/gdp ratio, where do you think india is heading!!! Thanks and keep going
Yet another excellent video, Thank you so much
This video was very informative. I’ve been learning a lot from your videos and I appreciate your efforts. I request you to make such more informational videos. Also, thank you. 😊
Thankyou mam , For explaining such complex topics in a easy way .
Thank you for the video... You made the such complex concept really easy for anyone to understand. The examples that you put in to explain the concepts much efficiently. Thanks a lot. 🔥🔥
Outstanding!
BEAUTIFULLY EXPLAINED AYUSHI❤
Your contents are helpful! Glad that we got you at the starting of journey (youtube,)...( Missed mr.akshat's, Couldn't watch his early videos..trying to cover) already watched all videos.. 💝
Very thankyou and respect for your super good quality content ma'am, Such awesome channel, This channel is gem for me, and thanks for Akshat Shrivastava Sir for suggesting this channel.
Very nice video and nicely put
Japan has high Debt to GDP ratio and it should considered as a sovereign risk. Investors still feel safe in Japanese economy as the high debt to GDP ratio is mainly due to internal borrowing by Govt of Japan .
Thank you ma'am . I am in debt to you for this kind knowledge.
Thanks to @akshat Shrivastav Sir for suggesting.
I would love to see both of you in a single videos and many more videos .
Thank you .
Jai Bharat .
Much helpful ma'am
Good knowledge shared 👍👍
Thank you
Good concept
Where is your answer on japan's DtoGDP problem?
These are really helpful.....i csnt understand financial newspaper now
Thanks maam, this really helped and made me learn so much! I think japan's most debt is internal and being a developed nation the credibility on such nations is very high
Thank you. Very informative and simplified explanations. !!! One request, it would be really helpful if you include more real time examples.
thank you ma'am another great video. It would be great to see a collaboration with akshat sir on how the economy affects the stock market.
Why do governments of all major economies keep on increasing country's debt on yearly basis inspite of fiscal deficit limit they use ? Shoudn't government's be really serious on nullifying/significantly reducing Overall debts ? Please make a video on this increasing Debt trap topic all major economies are going through & particularly focus on Indian context. Thanks!
Hi madam very much happy with your explanation and learning a lot about economic, inflation, demand and supply.
Please make more videos where common man other than non-finance background person will learn about economic.
Please make a video on how RBI will earn money along with
What is the basis to print money for government or central banks.
Thank you for making videos
Hi Ayushi. Amazing Video. Please share Japan Debt/ GDP answer.
I dont konw why ma'am but you sound like Akshat Srivastav sir. Any way best wishes and another great video keep up the good work and spread the wisdom of economics.😃
Great video mam
I went for that question in Internet , but didn't get any concrete explanation rather went to more complexity😅
In my opinion, Japan government issued bond which is majorly held by Domestic organizations which is backed by their own currency. Being a strong economy the organizations don't hesitate to invest there. And so it might not be as much as big problem for big economies like Japan , US to be in a high debt .
I would rather wait for your take on this Mam.
Answer to question
Most of the Japan debt is financed by bank of Japan by purchasing bonds issued by government at a very low interest rate. This makes it sustainable. Majority of debt is internal so the government doesn't have the burden to return it as opposed it would had in case of external debt.
Request you to please make videos on balance of payments (BOP), Currency depreciation, factors which leads to currency depreciation etc.
Thank you
🙏🙏
Make a detailed videos on such case studies mam
❤👍
Mam can u talk about how is organised sector more important for a economic than unorganised sector
Hi Ayushi ma'am, please make a video on Japan.
Debt 2.35 times GDP is too high !! But, I don't think Japan's economy collapse that easily, unless it takes right actions (like may be reforms) that needs to be taken right away.
I don't know much economics, but, tried answering to best of my knowledge, as u asked. Awaiting your opinion.
Thank you for the great video
What is the difference between micro and macro economics?
Good morning madam. As you said in the video the japan country is having a huge debt is good for the economy. This aspect we need to see from the perspective from where the debt is coming and to where it is going. In the case of Japan the debt is from internal resources such as selling the govt bonds. Which is a very safe kind of debt and any government can control easily. The most dangerous debt is from external sources and in terms of Dollor. When the economy could not sustain a reasonable growth the debt will become burden as the foreign currency will be difficulty to generate. In other words the exports need to be increased substantially. As of now even though Japan is having higher debt the country is having strong economy and export driven economy. The growth of population is also under control. I think I am right. Thank you madam
Thank you for the knowledge mam. More than 2.35% of gdp It’s not good as per your video. But I think Japan economy is good. I don’t have more knowledge about economics. I just try to answer your question.
👍👍🙏
Isn't interest payment to GDP and interest payments to govt revenue a better figure to compare ourselves when the Japanese government borrows? They are able to borrow at almost 0 per cent interest rates, while India needs to pay about 7% interest rates. So we need to correctly compare apples to apples by using interest rates is it not.
Manmohan singh reshaped indian economy!
Hi as you told inflation increase due to mismatch in demand and supply , but can't it be due increase in base rate of commodites whereas the demand hav also not increased supply remains the same...so what can be other factors of inflation..(government spending increased )
our economy is in what kind of inflation (low,mid,high,hyper)...
Sorry to ask you so many questions..
I hope you understand my question
Hey Ayush Why is repo rate by rbi is always kept in points and not in percentage which is easy to understand for most people
Ma'am please make collaboration with Akshat Shrivastava Sir to make much more potential content in stock market, And make 3 or 4 content per week based on economics and stock market... thank you once again ma'am.
People will start putting money in the banks just because the interest is high. Is it that simple??
please make a video how to crack upsc with job and without coaching number of poor people demand this in India
When rich become more richer by crooked ways...And poor become more poor becoz of it then revolutions take place....Sorry This is what political science teach us...
In India this is Happening at very fast pace.
If you can change the background look and mic, video and audio quality will be better..