A young boy was bullied in school for being a nerd and was crying on the streets. Dal went up to him and told him to pursue his dreams no matter what. That boy grew up to be Adam Smith.
At the year 2013 was discovered The Progressive Growth of Money Supply Principle, which say you how the Money Supply must growth, i.e., the quantity of money that market needs: ua-cam.com/video/iiKr-i022mY/v-deo.html If we increase the money supply by an amount equal to the sum of interest generated by the financial system during the preceding period, the market interest rate will be the natural interest (Wicksell) Thanks to the Progressive Growth of the Money Supply Principle we know today that it is impossible to return to the Gold Standard. The Principle will force Central Banks to change de monetary policies.
I'm studying investment management and banking and Economics is my major. majority of my modules need minimum economics knowledge. how you simplify everything but still get your point across is amazing thank you 😪💕
Dal can you a video on the liquidity preference and demand for money? That would be really helpful. You are such a wonderful teacher and you give me so much confidence for my A level! God bless you❤ Namaste
Hi, Could you argue that even during a recession, V will remain relatively constant as there is higher demand for necessities since households focus their spending in essential items. This causes V to increase above the normal rate in necessity markets but causes an insignificant dip in V for luxury markets which is offset. Does this make sense ?
In our textbooks, our equation is slightly different where they say it's: MV=PY. Y is referred to as real level of income. However, in class we learned MV=PT, where T is the number of transactions. I'm slightly confused. Would you say Q, Y and T are the same?
Y is just another way of saying National income which is the same as National output which in this case is Q (Y=Q).T Stands for total transactions taking place with in the economy. This include second-hand transformation as well as the exchange of goods and services. However PQ is a better term to use rather than PT. This should help a little en.m.wikipedia.org/wiki/Equation_of_exchange
So well done! This and the video on the money market are so simply explained in your videos - thank you! As a non-economist just wanting to know why interest rates are so high, this video was a gold mine.
Hey Dal sorry to ask, but I am doing theme 4 Economics Edexcel A and I cant find anything on the fisher equation in the spec. Is this something I need to know?
Ok, but suppose that the economy are going through an economic growth, or a recession, we will have a change in Q right? This will be offset by a change in M in order to hold the identity? And observing this, wouldn't be inflation ( considering it as a increase in P) a imbalance between M and Q?? (sorry for the bad english)
Hello sir. Is this the same macroeconomics used for India also, I am lil confused. Can you please lemme know this. M curious about this. AND SORRY FOR A QUESTION LIKE THIS
4:35 The UK doesn't have a fixed 2% annual (real) GDP! Instead, the GDP INCREASES by 2% annually, because the UK is a developed economy so it typically only grows by a few percent annually. If M and V remain relatively constant of the same period then this constant annual increase in Q should result in Deflation over time, unless the money supply (M) or circulation (V) also increases.
Surely if during a recession, the velocity of money decreases, so does the quantity produced, so the effect of the reduced velocity may be mitigated by the decrease in quantity produced in the economy...
The growing or contracting of Real GDP is independent of the velocity of money. Especially early in the interest rate manipulation cycle when the Federal Reserve starts to artificially suppress and lower FED rates which temporarily lowers consumer interest rates. Falling consumer interest rates effect the velocity of money because when interest rates are declining, money tends to gravitate more to things like the real estate market and the stock market because the cost of borrowing is cheaper to purchase real estate and stock markets tend to provide relatively high returns during periods of declining interest rates. So, during as people are putting their money into real estate or the stock market, ect, then that money is not being used to purchase things in the real economy; its sitting idle. Therefore the velocity of money is slow during these periods of declining interest rates. But once interest rates start rising, that previously held "idle money" tends to start flowing out of the real estate market and stock market (because real estate values and stock market values will be falling during this period of increasing interest rates). And a lot of that liquidated money will start finding its way into and moving around in the real economy; thus speeding up the velocity of money once again. When that starts happing, look out; skyrocketing inflation will be just around the corner.
A recession means the government aren’t spending enough, this may be due to debt and so printing money and utilising it may mean that there is more money circulating around the economy so money supply will increase
There is massive amount of money pumped up into the economy right now in the US and elsewhere and there is no noticeable inflation. V matters after all?
If V and Q are are constant, Why not just exclude from the identity. You can't do this because it will no longer be an identity and therefor just an opinion. So to attempt to predict V and Q is based on ideology not by actual practice. The reason so many economists and politicians agree with your interpretation is purely political, nothing more.
A young boy was bullied in school for being a nerd and was crying on the streets. Dal went up to him and told him to pursue his dreams no matter what. That boy grew up to be Adam Smith.
beautiful beautiful story
Nah bruh this aint it.
you nerds man
Dal doesn’t look his age at all.
😂😂😂
When people say who my economics teacher is, I say Mr Dal
do yall ever just binge watch his videos at 2x speed before exam for revision
At the year 2013 was discovered The Progressive Growth of Money Supply Principle, which say you how the Money Supply must growth, i.e., the quantity of money that market needs: ua-cam.com/video/iiKr-i022mY/v-deo.html If we increase the money supply by an amount equal to the sum of interest generated by the financial system during the preceding period, the market interest rate will be the natural interest (Wicksell) Thanks to the Progressive Growth of the Money Supply Principle we know today that it is impossible to return to the Gold Standard. The Principle will force Central Banks to change de monetary policies.
Meeee
@@wassermannberlin9848 wtf
@@EternalShadow1667 Yes should be difficult but it is the future!
doing that right now 🤣
I have an MBA in economics but have been retired for many years. Your videos are excellent reviews. Thank you so much.
You really need to be good to summarize and explain so well such a complicated and deep concepts in just 8 minutes. Amazing
I'm studying investment management and banking and Economics is my major. majority of my modules need minimum economics knowledge. how you simplify everything but still get your point across is amazing thank you 😪💕
You are life saviour! You cleared all my doubts in one go
Sir, no words to thank you, you are doing such a great work!!!!!
I am Chemical Engineer and learning Economics. You are my best teacher.
great video...thank you..the way you smile when explaining shows you really love your economics
exactly☺
fantastically explained with genuine enthusiasm, thank you!!
OMG. I've wanted an explanation of this for months. Thanks :)
Man you are good at explaining stuff. Keep up the good work.
This is super clear explanation and life-saving! Thanks
Wonderful teacher. Much appreciated!
Sir, you don’t know how much you’ve helped me. Thank you .
Examination is within 5 minutes. Woah take a chill pill and relax for a second.
I like your lecturing sir,keep up the great work🔈🔉🔊.
Dal can you a video on the liquidity preference and demand for money? That would be really helpful. You are such a wonderful teacher and you give me so much confidence for my A level! God bless you❤ Namaste
first year economics and finance student at uni and still using these for my first semester 😎
Love the energy and detailed knowledge, thank you!!
You helped me so much! Thanks a lot. Keep up the good work
excellent teaching style. thank you!!!
Thank you very much for this brilliant explanation.
Hi, Could you argue that even during a recession, V will remain relatively constant as there is higher demand for necessities since households focus their spending in essential items. This causes V to increase above the normal rate in necessity markets but causes an insignificant dip in V for luxury markets which is offset.
Does this make sense ?
In our textbooks, our equation is slightly different where they say it's: MV=PY. Y is referred to as real level of income. However, in class we learned MV=PT, where T is the number of transactions. I'm slightly confused. Would you say Q, Y and T are the same?
Y is just another way of saying National income which is the same as National output which in this case is Q (Y=Q).T Stands for total transactions taking place with in the economy. This include second-hand transformation as well as the exchange of goods and services. However PQ is a better term to use rather than PT. This should help a little
en.m.wikipedia.org/wiki/Equation_of_exchange
Thank you for uploading such a helpful and useful video .
So well done! This and the video on the money market are so simply explained in your videos - thank you! As a non-economist just wanting to know why interest rates are so high, this video was a gold mine.
would this be the kind of point you would use as an evaluation in a 25 marker for AQA?
thank you this is so helpful!! what i needed to finally get my head around it!!
clairvoyant explanation, thumps up!
Loved it! Thank you
Great job love from india❤
Helped! Thanks
Cheers for a great explanation
What an excellent video. Would you make a video on MMT? I would love to hear your thoughts on it.
Woah take a chill pill and relax for a second
For one second*
Anwer Siddig man is passionate about economics
The guy in the video actually says "take a chill pill and relax for ONE second" -- stop jumping to conclusions you fools :)
Great stuff Thanks!
Hey Dal sorry to ask, but I am doing theme 4 Economics Edexcel A and I cant find anything on the fisher equation in the spec. Is this something I need to know?
Super helpful! Thank u!
So so so helpful!
Can this be used to explain the classical model monetary policy?
thanks sir keep it up
very informative thanks!
Thank you so much.
Ok, but suppose that the economy are going through an economic growth, or a recession, we will have a change in Q right? This will be offset by a change in M in order to hold the identity? And observing this, wouldn't be inflation ( considering it as a increase in P) a imbalance between M and Q?? (sorry for the bad english)
Thnk uu sir helped me a lot❤
Did he upload any class on friedman quantity theory of money, if so please send me link
Thank you sooooo much :) it's really helpful.
Please also make a video fisher effect
fisher equation r=i-inflation and not MV=PY which is the quantity equation
Hello sir.
Is this the same macroeconomics used for India also, I am lil confused. Can you please lemme know this.
M curious about this.
AND SORRY FOR A QUESTION LIKE THIS
Economics is pretty universal, I'm sure it's consistent with your course.
Can you teach us the cash balance approach as well?
nice video. thank you
Had a great run
4:35 The UK doesn't have a fixed 2% annual (real) GDP! Instead, the GDP INCREASES by 2% annually, because the UK is a developed economy so it typically only grows by a few percent annually.
If M and V remain relatively constant of the same period then this constant annual increase in Q should result in Deflation over time, unless the money supply (M) or circulation (V) also increases.
what about the goods that aren't sold but produced(invemtory)?
Abdulrahman Nazeer they don't matter. If they don't cause a monetary flow, they don't matter.
The way you teach is amazing! And you're too cute :P
Surely if during a recession, the velocity of money decreases, so does the quantity produced, so the effect of the reduced velocity may be mitigated by the decrease in quantity produced in the economy...
The growing or contracting of Real GDP is independent of the velocity of money. Especially early in the interest rate manipulation cycle when the Federal Reserve starts to artificially suppress and lower FED rates which temporarily lowers consumer interest rates. Falling consumer interest rates effect the velocity of money because when interest rates are declining, money tends to gravitate more to things like the real estate market and the stock market because the cost of borrowing is cheaper to purchase real estate and stock markets tend to provide relatively high returns during periods of declining interest rates. So, during as people are putting their money into real estate or the stock market, ect, then that money is not being used to purchase things in the real economy; its sitting idle. Therefore the velocity of money is slow during these periods of declining interest rates.
But once interest rates start rising, that previously held "idle money" tends to start flowing out of the real estate market and stock market (because real estate values and stock market values will be falling during this period of increasing interest rates). And a lot of that liquidated money will start finding its way into and moving around in the real economy; thus speeding up the velocity of money once again. When that starts happing, look out; skyrocketing inflation will be just around the corner.
What quantity of money mean- money supply or money demand?
Money Supply = The amount of money (cash, notes and coins) currently in circulation throughout the economy.
Anyone do Edexel A do we need to know this?
You are a life saverrrr
keep making more videoss
I love you Dal
Thank you
Why does the money supply increase during a recession?
A recession means the government aren’t spending enough, this may be due to debt and so printing money and utilising it may mean that there is more money circulating around the economy so money supply will increase
EconplusDal aka Papi
U luk like son of sal from khan academy 😛
my nigga
Thanks
There is massive amount of money pumped up into the economy right now in the US and elsewhere and there is no noticeable inflation. V matters after all?
Can't both sides be right depending on the situation? You should unite all the theories
If V and Q are are constant, Why not just exclude from the identity. You can't do this because it will no longer be an identity and therefor just an opinion. So to attempt to predict V and Q is based on ideology not by actual practice. The reason so many economists and politicians agree with your interpretation is purely political, nothing more.
THANK YOU SO MUCH
impressive
what is his name?
It's clearly understandable
Virang Dal
god bless u
sir pls explain with diagram
MV=PT
Still helpful in year 1 of university haha
too gòod
Osm
you look like mr vahora
you are too busy
In short, Monetary theory is dreadful