Current economy in the West heavily dependents on service, that does not create values. If prices of real goods go up, i.e. inflation, employments of the sector may be reduced, as well as the products, which results in contraction of economy, i.e. depression. It is difficult to reverse such economic contraction because people spend little on service during economic hardship. Let hope Janet Yellen to prevent such economic downturn.
I am a fan and flow all your released videos which I appreciate to all your efforts and concise beneficial presentation. That's why I need to understand, Is it possible that inflation rate decrease while a prices is high and increase? Like what I have noticed nowadays in Egyptian's economy. How could that happen? Because as much as I know that inflation increase means prices increase. Thanks in advance.
Inflation is literally the amount by which prices rise over a period of time. Inflation rate however can remain steady or fall as long as the price rise isn't across the board and some commodity prices fall at the same time as others rise. Lies, damned lies and statistics, basically
It depends what type of inflation you're measuring. For example it's quite possible for CPI price inflation to decrease due mainly to a fall in oil and energy prices but for core price inflation ( which is calibrated to exclude volatile prices such as commodities) to increase. Also, CPI is a weighted average, which means that if on average prices are falling it's more than possible for some goods to experience increases in price.
Egypt's inflation is caused by the devaluation of its currency in 2016. This caused foreign money to come in to increase buying and selling in Egypt. This increases GDP but also increases inflation.
Watching this in 2022. I think where heading for recession and stagflation. Couple of these bubbles need to pop and house prices need to come inline with wages. I think there will be some property bargains in 2023/2024. There generation of under 30’s who have never know the Fed/BOE/ECB interest rate to be above 1%. When all this people who overstretched themselves with mortgages 2020 - 2022. Come of there fix rates of 1.99% to new world of normal rates of 4-5% and higher utilities and petrol prices people will be going bankrupt/ loosing jobs.
Interesting how it isn't well understood even when history clearly shows the causes. Also interesting how the governments policies are identified as a contributor, but the FED is absovled when they clearly have the control over monetary policy and are responsible for managing the rate of inflation.
Macroeconomics in a nutshell Money is a social unit of account having a fiscal/tax relation between the issuer of the currency and its users, where spending precedes taxation. Government expenditures and not taxes pay for entitlement/discretionary spending and interest on the debt. Demanding that taxes be paid, and in dollars, insures the validity of the dollar as the means of exchange. Deficit Spending is the government spending more money into the economy then it taxes back out. Government deficits provide the liquidity essential for an economy to function. Taxes are vital for restraining concentrations of wealth and include capital gains, dividend, corporate, inheritance, estate and a progressive income tax. The National Debt is the amount in dollars spent into the economy that the government buys back in exchange for Treasury securities, essentially transferring money from checking to savings. Inflation is a rise in prices across the economy due to a shortage of resources and/or productive capacity. Hyperinflation is a collapsing value of the currency across the economy due to a collapse of resources and/or productive capacity. Stagflation is a rise in prices, compounded by a decline in economic activity across the economy due to the scarcity of a vital resource. Recessions are cyclical contractions of liquidity across the economy that cause a corresponding decline in economic activity. Depressions occur when the government runs a surplus, starving the economy of liquidity that cause deep and systemic unemployment, and an unsustainable escalation in private debt.
As long as rent and mortgages aren't part of the inflation numbers, well, it's really all make believe. From my 57 years on this planet and in the US, it just seems like the more stable or deflationary products are, the more people pay for where they live. There should be, if there isn't, a name for this in economic theory.
That recession in the early 80s lasted about a year and a half, at the very beginning of the Reagan presidency. Whilst the next six years under Reagan were great...throwing his pic in there seemed a bit biased, esp considering four previous years of MEH under Carter.
Not entirely true, but not entirely false. Biden didn't _cause_ stagflation; he made it impossible to defeat. It was already nearing dangerous levels as early as the 1980s. *Richard Nixon* was the true cause of stagflation, and reversed the United States' gains from WWII. *Ford* and *Carter* managed to stonewall the problem, but not fix it. *Ronald Reagan's* Reaganomics (also called "voodoo economics) temporarily reversed stagflation, but at the cost of the national debt and the income gap becoming untenable for the remainder of his term. *Bill Clinton,* for all his failings, did not exacerbate the United States' national debt directly, but created an atmosphere of greed where stabbing opponents in the back with aggressive buyouts and mergers was rewarding and lucrative. *George H.W. Bush* and *George W. Bush* fell for Osama Bin Laden's plan to financially bankrupt the United States hook, line, and sinker; the War on Terror was ultimately unsuccessful and drained the US militarily, financially, and diplomatically. *Barrack Obama* failed to repair the United States' foreign policy, and the US became a _Vote-of-no-Confidence_ for the rest of the developed world. In addition, his decision to legalize Gay Marriage permanently divided the United States, once a nation under God but now openly in defiance of him, and turned American against American. *Donald Trump* inherited a rapidly declining world power and attempted to run damage control by reasserting itself as a viable player; he stepped up against American Antagonists, reopened pipelines, deactivated external, wasteful programs, and fortified military and defense spending. However, it was too late; most citizens were drained of wealth and now hated each other, the country was already rotting from the inside out, and the entirety of the American Government spent the remainder of his term fighting any decisions he made because he was not an insider to the workings of US politics. In addition, some of his foreign policies were too aggressive and cut off vital trade partners at a time the US most needed them. *Joe Biden* entered the presidency without any intention of working on America's financial problems, and simply pretended they weren't there. He allowed China to easily step up to the plate as the world's new financial superpower. His incompetence and mismanagement also allowed america to be humiliatingly defeated in the East, Russia to shut US influence out of Europe, and humbled South Korea and Japan. By spending US tax dollars as if they were a blank cheque on ineffective government initiatives, and effectively cut Canada off from world trade. A series of poor leadership _culminated_ in Biden, who multiplied the already bad money problems in the US by 1,000,000 and has no intention of stopping. But he himself didn't cause the problem, which simply needed some good presidents to fix.
Would somebody kindly promise me that this channel willl never die?
I...promise. But only for the rest of the year.
All channels die and goto youtube heaven 🙌
Macro economics exam tomorrow. Just what I needed. Thanks
Hi
Yellogarry
Here in May 2022. Thanks for the video.
I thought stagflation was when there's too many male deer, thus devaluing the buck
lol. I'm a huge nerd for thinking this is funny, but it is.
Lol this is greatness
Wow great comment
Yes! And funny
Lmao
Owh man...I ain't looking forward for this, but here I am.
Quick and simple thanks.
holy shit this is happening right now
0:28... Corruption is the reason.
0:41 was it just me or the graphics resemble the french flag...
Thanks for knowledge
Welcome to 2020.
Welcome to 2021.
2022*
This comment aged well.
Pretty nice. It would be much better without the 'click here'. Just stick to the subject, it's the best way to get subs and likes.
Happy new year!
I really hope the MR university / this channel persists....forever! Brilliant source of info always.
Thank you 🙂
Current economy in the West heavily dependents on service, that does not create values. If prices of real goods go up, i.e. inflation, employments of the sector may be reduced, as well as the products, which results in contraction of economy, i.e. depression. It is difficult to reverse such economic contraction because people spend little on service during economic hardship. Let hope Janet Yellen to prevent such economic downturn.
this is great thanks
I am a fan and flow all your released videos which I appreciate to all your efforts and concise beneficial presentation. That's why I need to understand, Is it possible that inflation rate decrease while a prices is high and increase? Like what I have noticed nowadays in Egyptian's economy. How could that happen? Because as much as I know that inflation increase means prices increase. Thanks in advance.
Inflation is literally the amount by which prices rise over a period of time. Inflation rate however can remain steady or fall as long as the price rise isn't across the board and some commodity prices fall at the same time as others rise. Lies, damned lies and statistics, basically
It depends what type of inflation you're measuring. For example it's quite possible for CPI price inflation to decrease due mainly to a fall in oil and energy prices but for core price inflation ( which is calibrated to exclude volatile prices such as commodities) to increase. Also, CPI is a weighted average, which means that if on average prices are falling it's more than possible for some goods to experience increases in price.
Egypt's inflation is caused by the devaluation of its currency in 2016. This caused foreign money to come in to increase buying and selling in Egypt. This increases GDP but also increases inflation.
What happens to real estate and gold during stagflation? Do they go up since they’re hard assets?
Real estate prices during low interest rates?
Yep. Gold skyrocketed in the '70s.
Watching this in 2022. I think where heading for recession and stagflation. Couple of these bubbles need to pop and house prices need to come inline with wages. I think there will be some property bargains in 2023/2024. There generation of under 30’s who have never know the Fed/BOE/ECB interest rate to be above 1%. When all this people who overstretched themselves with mortgages 2020 - 2022. Come of there fix rates of 1.99% to new world of normal rates of 4-5% and higher utilities and petrol prices people will be going bankrupt/ loosing jobs.
Interesting how it isn't well understood even when history clearly shows the causes. Also interesting how the governments policies are identified as a contributor, but the FED is absovled when they clearly have the control over monetary policy and are responsible for managing the rate of inflation.
Isn'tt FED considered as government tho?
Macroeconomics in a nutshell
Money is a social unit of account having a fiscal/tax relation between the issuer of the currency and its users, where spending precedes taxation.
Government expenditures and not taxes pay for entitlement/discretionary spending and interest on the debt. Demanding that taxes be paid, and in dollars, insures the validity of the dollar as the means of exchange.
Deficit Spending is the government spending more money into the economy then it taxes back out. Government deficits provide the liquidity essential for an economy to function.
Taxes are vital for restraining concentrations of wealth and include capital gains, dividend, corporate, inheritance, estate and a progressive income tax.
The National Debt is the amount in dollars spent into the economy that the government buys back in exchange for Treasury securities, essentially transferring money from checking to savings.
Inflation is a rise in prices across the economy due to a shortage of resources and/or productive capacity.
Hyperinflation is a collapsing value of the currency across the economy due to a collapse of resources and/or productive capacity.
Stagflation is a rise in prices, compounded by a decline in economic activity across the economy due to the scarcity of a vital resource.
Recessions are cyclical contractions of liquidity across the economy that cause a corresponding decline in economic activity.
Depressions occur when the government runs a surplus, starving the economy of liquidity that cause deep and systemic unemployment, and an unsustainable escalation in private debt.
Unfortunately it comes too late for my exam
As long as rent and mortgages aren't part of the inflation numbers, well, it's really all make believe. From my 57 years on this planet and in the US, it just seems like the more stable or deflationary products are, the more people pay for where they live. There should be, if there isn't, a name for this in economic theory.
What?
Erhm... I guess I need to tell the world that I was first to comment?
did you know Corona was comming?
So stagflation is worse than inflation.
Well damn, looks like we might be heading that way again 😓
That recession in the early 80s lasted about a year and a half, at the very beginning of the Reagan presidency. Whilst the next six years under Reagan were great...throwing his pic in there seemed a bit biased, esp considering four previous years of MEH under Carter.
Let's go Brandon!
Unemployment is fixed with taxes on imports. Yes, the Federal reserve can't do that.
InaKitchen Tablet Artificial intelligence?
JOE BIDEN AMERICA
Lets go Brandon ---- lets see if Biden will cause stagflation for 2022
Not entirely true, but not entirely false. Biden didn't _cause_ stagflation; he made it impossible to defeat. It was already nearing dangerous levels as early as the 1980s.
*Richard Nixon* was the true cause of stagflation, and reversed the United States' gains from WWII. *Ford* and *Carter* managed to stonewall the problem, but not fix it.
*Ronald Reagan's* Reaganomics (also called "voodoo economics) temporarily reversed stagflation, but at the cost of the national debt and the income gap becoming untenable for the remainder of his term.
*Bill Clinton,* for all his failings, did not exacerbate the United States' national debt directly, but created an atmosphere of greed where stabbing opponents in the back with aggressive buyouts and mergers was rewarding and lucrative.
*George H.W. Bush* and *George W. Bush* fell for Osama Bin Laden's plan to financially bankrupt the United States hook, line, and sinker; the War on Terror was ultimately unsuccessful and drained the US militarily, financially, and diplomatically.
*Barrack Obama* failed to repair the United States' foreign policy, and the US became a _Vote-of-no-Confidence_ for the rest of the developed world. In addition, his decision to legalize Gay Marriage permanently divided the United States, once a nation under God but now openly in defiance of him, and turned American against American.
*Donald Trump* inherited a rapidly declining world power and attempted to run damage control by reasserting itself as a viable player; he stepped up against American Antagonists, reopened pipelines, deactivated external, wasteful programs, and fortified military and defense spending. However, it was too late; most citizens were drained of wealth and now hated each other, the country was already rotting from the inside out, and the entirety of the American Government spent the remainder of his term fighting any decisions he made because he was not an insider to the workings of US politics. In addition, some of his foreign policies were too aggressive and cut off vital trade partners at a time the US most needed them.
*Joe Biden* entered the presidency without any intention of working on America's financial problems, and simply pretended they weren't there.
He allowed China to easily step up to the plate as the world's new financial superpower. His incompetence and mismanagement also allowed america to be humiliatingly defeated in the East, Russia to shut US influence out of Europe, and humbled South Korea and Japan. By spending US tax dollars as if they were a blank cheque on ineffective government initiatives, and effectively cut Canada off from world trade.
A series of poor leadership _culminated_ in Biden, who multiplied the already bad money problems in the US by 1,000,000 and has no intention of stopping. But he himself didn't cause the problem, which simply needed some good presidents to fix.
@@hobomike6935 Too much coffee ?
@@hobomike6935You really made an effort, impressive.
Macro economics exam tomorrow. Just what I needed. Thanks