Liquidity Preference Theory of Interest

Liquidity Preference theory or the Keynesian theory of interest and the argument for its being as indeterminate as the classical or the loanable fund theory on the ground that Keynes himself brought about against the latter.#YOUCANLEARNECONOMICS

[@nitismukhiya]

Sir, Here I am from Bihar, studying a Master Degree in Economics at a local college. We have no good teachers so your lectures are very helpful for us. Please don't leave online teaching.

[@EZClassesfaghsa]

Thanks for watching my videos

[@nilayakash]

which college ?

[@nitismukhiya]

R K college, Madhubani.

[@raeesa2683]

Wait, so you're doing this stuff at Master degree syllabus? I'm over here in school not even university level and it’s quite complicated , not looking forward to it in university

[@nilayakash]

@@raeesa2683 He has done so many things at school level that you can't do in your entire life.
So please don't cry down others. Atleast he's trying his best .

[@ajeshac2860]

Dear sir this topic was quite confusing for me all times. But now i have got very clear idea about liquidity trap....Thank You sir

[@salonimittal5189]

Lucid and detailed.... thank you sir

[@navyaamusic]

Hello sir...I have been watching your videos since last 2 years...and you have always helped me...the calmness of your voice and the way you teach...wish I had teachers like you in my college.🙏

[@EZClassesfaghsa]

It's my pleasure

[@mansimishra9502]

I'm preparing for exams, and this was really helpful. Thanks a lot sir. A very thorough explanation 👍👌👌

[@EZClassesfaghsa]

Thanks Mansi for watching my videos.

[@sandeshthakur2977]

Which exam you preparing for?

[@EZClassesfaghsa]

Thanks a lot.

[@vinimon143]

Hi Sir

[@himanshupandey7086]

Enjoyed learning it. Most impressive part is sir using Eco-vocabulary at each stage of explanation.

[@EZClassesfaghsa]

Glad it was helpful!

[@windingchabin1380]

thank you sir ur teaching is so good...and easy to understand...m going all through ur vedio n helping me a lot

[@EZClassesfaghsa]

You are always welcome.

[@namrataiyer1105]

HEARTY THANKS TO YOU SIR FOR THE EXPLANATION. ..YOU REALLY HELPED ME TO UNDERSTAND THE CONCEPT CLEARLY. GOD BLESS YOU RICHLY FOR YOUR SELFLESS EFFORTS!

[@EZClassesfaghsa]

Thanks for watching my videos

[@radhapvr]

Though I am Engineer I can understand concepts by the way you teaching. Thanks lot sir.

[@EZClassesfaghsa]

Glad to hear that

[@erarshidsmathacademy3337]

Hello Sir, I am student with an engineering background. So, i decided to start reading economics from the basics and i started reading the NCERT book. Regarding this topic, the NCERT book compares the demand of bonds to market rate of interest, not the ROI given by bond. However, i didnt find this comparison in your lecture. So my confusion is:Which ROI is plotted in the LP curve against Speculative demand?

[@elihirschman2727]

Fantastic! Could you give me a quick explanation as to how I can represent L(i) numerically as a decreasing function in the general money model M/P = L(i) x Y?
🙏 🙏

[@jhanvishah903]

Thank you so much sir! Cleared so many concepts.

[@EZClassesfaghsa]

Glad to hear that

[@richmoremugandi2193]

Great. Well elaborated!!

[@EZClassesfaghsa]

Thanks

[@kaushalmaurya4550]

12:00 sir according to your explanation demand for money is dependent on rate of interest (r).Then why r is on y axis it should be on x axis

[@EZClassesfaghsa]

What’s the problem in rate of interest being measured on Y-axis

[@kaushalmaurya4550]

@@EZClassesfaghsa Sir, we know that independent variables should be on X axis and dependent variables on Y axis. And in this explanation Rate of interest (r) seems independent variable that is why I am asking that r should be on X axis

[@Shauracool123]

Sir, I have a doubt, please clear
It seems speculative demand is a function of interest. And even for speculative demand, we need to know interest. So the question again comes how will interest be determined.
Can we say that the interest rate actually follows the rate given in the bond market? Like for any reason say, safe-haven demand for US bond demand increases so its prices will go up, and return on them will go down. So given that return on bond has fallen. Does it mean that people would demand less money from the bank to invest in the bond market and due to this interest rate will fall. But in this case rate of interest has actually become a function of happening in the bond market rather than other way around.
Or can we say that the interest rate is determined by Central Bank depending on the overall economy and then this mechanism follows. Where speculative demand is function of rate decided by Central Bank?

[@AbhishekChatterjee-ic1om]

Sir, great foundational video for IS LM model . This video helps me a lot.

[@EZClassesfaghsa]

Glad to hear that

[@mohsinqureshi04]

ThankYou sir for making this understanding so easy ❤️🙏😇

[@EZClassesfaghsa]

I am delighted that it serves the purpose.

[@biofesta]

Sir Would it be possible for you to make a vudeo on liquidity trap please...You are really lucid and thanks for that..Hope you would shed some light on liquidity trap really soon..

[@EZClassesfaghsa]

Sure I will

[@dilankakaluarachchi9863]

Sir can you give me answer this question. Discuss liquidity preference framework to evaluate the effect of monetary policy on interest rate.

[@siyakidunia9791]

Sir ise demand for money bhi kehte hai kya plz bataiyee

[@Trueseculardesi]

Sir, you're really helpful. I recently came across one of your lecture in Hindi-Urdu which I found to be kinda interactive and smooth in delivery. I would love to watch more lectures in Hindustani.❤️

[@EZClassesfaghsa]

It's my pleasure

[@ramkishoreprasad8754]

Sir mera ek question hai ki professor Annatol murad Or chapman kya classical economist hai

[@varunjashnani3120]

Majja aagaya, sir ne keyenes ki baja di :-D

[@shivrajchahal3]

Fabulous Explanation Sir !! Thank You !

[@EZClassesfaghsa]

Keep watching

[@somyatripathi3358]

Sir at liquidity trap....will crowding out effect is 0...if yes then how

[@709jaspreetkaur2]

Nyc Nd helpful video

[@EZClassesfaghsa]

Thanks 😊

[@miqdadulislam8083]

Superb sir...God bless you..saw 10 vedios over it none satsfied me as yours

[@EZClassesfaghsa]

Thanks for watching my video

[@ssoumik]

Sir if possible start a video series on econometrics

[@cashmoney2159]

Sir isme jab supply of Money ghata tab rate of interest badha matlab banks ne rate of interest badhaye to logo ne pesa banks me dal diya tab jake supply ghati?? Ye rate of interest kese badhta hai real life me batao not on theory of inversely proportional and all please

[@bhavygupta11]

Tx sir for such wonderful class

[@EZClassesfaghsa]

Thanks Bhavya

[@amritgill4671]

Thank u sir
U help me to spend my lockdown time judiciously 👍👍

[@EZClassesfaghsa]

Thanks a lot

[@preetypanwar9159]

Wonderful sir.... Thanks a world

[@EZClassesfaghsa]

Most welcome

[@SiddhantKate]

The best explaination of LP. Thank you sir.

[@EZClassesfaghsa]

Thanks Siddhant

[@TurboTech22]

Great explanation thank you for this 💯

[@EZClassesfaghsa]

Glad it was helpful!

[@siddharthabarui7615]

Fine

[@EZClassesfaghsa]

🙏

[@sanamkijeya3573]

Thanks soooooooo much sir,very helpful

[@EZClassesfaghsa]

You are welcome

[@sonam7177]

nyc explanation sir ....sir plz explain how to economy out of liquidity trap????

[@EZClassesfaghsa]

Thanks

[@MANOJkumar-bi2zm]

Mundell flaming model with in Hindi video
Very nice video sir ji

[@EZClassesfaghsa]

i will

[@Anjudural]

Where do you live sir ? 🤔

[@EZClassesfaghsa]

Jeddah, Saudi Arabia

[@poojarejiammu6230]

Thank u so much sir

[@shreerai6823]

excellant sir

[@EZClassesfaghsa]

Keep watching

[@laxmipal3957]

Sir I am not able to link speculative demand and interest rate with bond- interest rate

[@laxmipal3957]

Please explain how are they both related

[@nehamathewkottoor]

Was really helpful . Thanks a bunch :)

[@EZClassesfaghsa]

Thank you

[@aakashjindal1]

thank you sir good explanation

[@EZClassesfaghsa]

You are welcome

[@anwinaby6421]

Sir I have a doubt
Is there any reason why liquidity preference curve convex to the origin

[@nitismukhiya]

When the rate of interest increased the money supply decreased. liquidity preferences are just similar to the money supply. I have given you a clue now think yourself.

[@nataliagameplay1838]

Becoz of negative relationship between intereste rate and money suppley.

[@skswathi4271]

Nice teaching 😊😊😊really good.. .

[@EZClassesfaghsa]

Thanks.

[@narayanakumark774]

Good teaching sir

[@MerchantMalik]

Great job in explaining ...

[@deepapal8904]

Thank you so much sir❤️❤️❤️❤️❤️

[@EZClassesfaghsa]

Most welcome

[@Naveen-ih7to]

Thank you sir

[@AnnuSingh-yn6sq]

How is income and liquidity preference curve related?

[@EZClassesfaghsa]

LP (speculative demand for money), in Keynesian scheme, is a function of rate of interest.but unless you know the Contingency demand and Transaction demand for money, where both are functions of Income level because it will determine as to how much money will be available for speculation.

[@AnnuSingh-yn6sq]

@@EZClassesfaghsa thank you Sir for reply. This mean fall in income, less speculative money, leftward shift of LPC.

[@tingdong3001]

Rarely I find clear explanation on economics. On "liquidity trap"- seems non-existent in western economies now. They can reach zero interest level, others even in the negative territory.

[@renuchoudhary5178]

Hello good morning sir kaya aap ye saree topic hindi me bhee padaa sakte ho 🙏🙏

[@skswathi4271]

Sir, How I can clear my doubt about Keynes theory?

[@EZClassesfaghsa]

You can send your queries, I will try to reply.

[@dsshona5953]

Thank U sir. Explained well

[@EZClassesfaghsa]

Thanks

[@syedrizwanulhaq6304]

I am listening to your lecture Sir, please upload in Hindi
For proper understand

[@EZClassesfaghsa]

We will try

[@drvarinderjitrai839]

Very good sir .dr. v. J. Rai

[@EZClassesfaghsa]

Thanks

[@NishantSingh-yl3of]

🙏

[@sandhyapaik]

Thank u sir..

[@EZClassesfaghsa]

Welcome

[@administrative5195]

Really helpful !!

[@EZClassesfaghsa]

Thanks

[@Shahzada_123-n3t]

sir how i can get economic easily

[@EZClassesfaghsa]

By reading more ....

[@prabhagupta1486]

Thankyou sir

[@EZClassesfaghsa]

you are welcome

[@hassanmu6916]

Love from Pakistan

[@EZClassesfaghsa]

Shukriya

[@shakaibhassan6188]

not good teaching method

[@EZClassesfaghsa]

Ok. Thanks for your feedback.

[@ahmadrashedsediqi3674]

Thank you sir

[@EZClassesfaghsa]

Welcome

[@abhishekgoud6576]

Thank you sir

[@EZClassesfaghsa]

You are welcome

[@anjanacc7166]

Thank you sir

[@EZClassesfaghsa]

Welcome