M1 and M2 Money Supply Explained (The Easy Way) | Think Econ
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- Опубліковано 2 лип 2024
- #moneysupply #macroeconomics #economics
In this video we take a look at the different types of money supply, including M1, M2, M3 and more!
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your videos are amazing. please dive deeper into more complex economic topics in this same easy, short and quick teaching style you have. stuff like econometrics explained by you would be amazing.
Thank you the explanation is awesome!!
You're very welcome!
Great video. However, believe that bank reserves is in M0, not M1, since they are not money or near money. Currency in circulation, however, is in both the monetary base M0 and M1.
I believe that the Federal Reserve now includes savings accounts as part of M1, as of 2020. This video is from 2024?
Hi sir 😭❤️ first of all thanking you for creating such a good channel for us ! I'm a student from India who is studying in 12 grade . For me economics is too difficult. I just sleep in my economic classes 🥲 because i felt it too boring....but i just saw one of your video unexpectedly and omg it's so interesting ❤ When my teacher explained this i never understood anything....but your videos made me understand everything ❤❤ thank you thankyou thankyou so much ❤❤❤
I'm really glad to hear that!
QUESTION 🙋♀️ : I recently keep hearing a phrase “ REPO Facility and Reverse REPO facility “ and that it is getting lower so is that a part of the country’s money supply ?
Savings are now M1
It depends on the liquidity of the account, as liquidity is what differentiates each classification
The statement that bank reserves are part of M1 will be confused with banking ( or federal ) reserves, which the government counts as M0 or MB and is not included with M1 or M2
Banks don't hold reserves anymore. They completely got rid of fractional reserve banking years ago.
@mmmmmMuffinz I think what you mean to say is that the reserve requirement was removed. I assure you that the bank still holds reserves or the system would fail. Banks (in the US as of 2020) aren’t REQUIRED to keep 10% in reserves anymore, that’s all.
I think there is still a reserve requirement, but it currently is at zero%. However, the government still imposes other liquidity constraints based on the level of risk they evaluate.