We have the price we paid (p) times the amount of total goods/services in the economy (y). So this gives us nominal gdp which is the current "inflated" perception of what our economy is worth. This is why the number is usually above one for P because it is factoring in inflation.
Khan literally knows everything whoa thanks for sharing your knowledge with us!
It's like there's nothing he khan't know...
thanks, you made it clear to understand the relationship between money supply and price index (inflation)!
Thanks for your explanation! These extreme examples really help.
It is a qualitative look. Reality has time.
At first I thought it said quantum theory of money lmao
Yeah :( money that changes if you observe it
That would be an awesome theory though...
Hello
I thought I could applied this to my own economy LOL! And if it does, how applicable is it and for what circumstances.
Out of curiosity, what do you consider to be your own economy?
in 08 the banks did NOT put the money in the economy, they shored up there balance sheet and did not loan it out
Quantity theory of money? More like "Khan Academy keeps helping us to study!"
Can this be used to explain the classical model of monetary policy?
Just an example New Zealand has a GDP of $200 Billion annually.
Great
Velocity is at record low. GDP is inflated by financial returns (unproductive)
8.5 percent as of april 2022 says your wrong
So inflation is a monetary "phenomenon" and has nothing to with rich people hoarding assets and then asking for higher price?
Like houses?
This is quite close to how Austrian economists think when it comes to monetary policy
Not in any way
Can you please explain Fischer's approach?
fudge factor
Qefeseral reserve can tac it
How could you translate this into crypto stats such as cdd
"Velocity of money" ?👀
The velocity that the money be transfered hand by hand ;)
i don't get how p.y equal to nominal gdp
We have the price we paid (p) times the amount of total goods/services in the economy (y). So this gives us nominal gdp which is the current "inflated" perception of what our economy is worth. This is why the number is usually above one for P because it is factoring in inflation.
Scary MIT and IIT bombayx gateways till Loyal And Royal Gates silver and gold
How do I calculate price level?
Nominal/real GDP
Bruh this explanation is not good. its the first time in saying this
Why?
Yeah you can't just say it's not good without explaining why it's not good.
To be fair he's explaining a circular theory so it's shouldn't make sense. A*B=C*D makes as much sense as MV=PY.
What specific issue(s) did you have with it?