The Tools of Monetary Policy
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- Опубліковано 18 січ 2012
- This video lesson graphically presents the three tools Central Banks have at their disposal for managing the level of aggregate demand in the economy. Through increasing or decreasing the money supply, a central bank has influence over the interest rates in a nation, and therefore over the level of investment and consumption among firms and households. To accomplish this, three tools are employed: The reserve requirement, the open market purchase or sale of government bonds, and the discount rate.
This lesson illustrates these three tools and explains the relative importance of each to monetary policy makers.
this has been massively helpful- Im so grateful to kind people like you who take the initiative to teach others! thank you!
This video is WONDERFUL! THANK YOU for putting this topic out here in such a visual way!!!!!
You're so helpful! I owe my midterms to you, thanks a lot!!!!
The video is very informative and now I can relate it to my countrys central bank role and its effects on the economy. I used to watch the news regarding the central bank but never have I understood whatever they are saying. Now I get the whole idea of the commercial banks and the household. This knowledge shared will greatly help me become very informative about my country. Thank You so much.
Wow. I love how moderate you discuss the topic, it keeps me at pace.
this video just saved my grade! thank you so much! i can't express how appreciative i am.
This is incredibly awesome! I am a layperson who doesn't have even any basic idea about the key terminology and yet the whole idea could be conveyed to me clearly! Thumbs up! (y) (y)
This video is amazing, great visual. You are a gifted presenter
This visual was so helpful! Thank you tons!
Thank you so much for this video. Very helpful, particularly with the examples and visual assistance provided. Excellent presentation.
More than enough. Better lecture than usual economic class in college.
Succinctly summed up a topic that had vexed me through out my academic career. Thank you.
gave my test today! u fetched me 35 freaking marks! i passing because of you!! thannkyouuu sooo muchh!!
For the author of this video thanks! The video was so understandable that it was even entertaining to watch. Thanks a lot.
I like your video better more than other's videos. Thanks MAN.
This is so clear...thank you....
you are the best, i am so grateful.. your videos are really helping me
This is an amazing video! Thank you!
This is the best presentation ever on the net
So easy to understand thank you so much!
this was a brilliant lecture and really helped. Big Thanks.
A very effective lesson here! However, I'm curious to know if the Federal Funds Rate (interest rate for inter-bank lending/borrowing of excess funds stored at the Fed) affect the setting of Interest Rates?
Thank You so much, this video is very helpful.
Thank you so much, i missed a lesson last week on this topic and you saved my ass
thank you for your effort while preparing visual materials.
Thank you soooo much!!! This helped a lot!
I benefited from your lecture.
Thanks so very much!
thank you so much... great video.. amazing. I had it all in my head but not in order and you just clarify everything for me =)
You saved my life. Thank you
Thanks, very useful and resourceful.
very clear. totally useful, Thank you
This is the best and well-explained video that I ever found! Thank u very, very , very muchhhh
Very informative. A million thanks
Thanks, helps a lot!
Thank you Mr. Welker! :)
Thank you so much!
You don't know how helpful this has been.
I have been reading this monetary policy for a long time and keep getting all confused.
You made it more relatable to real life events than using all the economic jargons.
really helped a lot. thank you jason
thanks 4 uploading and sharing ds lecture...it helped me alot for preparing my presentation
Excellent, Excellent, explanation of Monetary Policy!
Monetary policy instruments are a set of measures whose main purpose is to change the amount of money in circulation. They are applied to change the number of loans, interest rates and other criteria of the foreign exchange market and the loan capital market.The monetary policy carried out by the Central Bank of the country is a segment of the state policy in the sphere of economy. Its main task is to regulate the volume of money supply and maintain the optimal level of purchasing power of the national currency. In case of production decline, the increase in the amount of money leads to an increase in consumption, and in case of inflation their reduction stabilizes the situation in the country. Monetary policy is developed taking into account the main directions in development of economy of the state.
Appreciate this. From the Fiji Islands in the South Pacific.
It all makes sense now! thanks to you! :)
Thank you so much.awesome.
Thanks helped me a lot for my final
thank you so much! i was so lost in class but i get it now:)
Thank YOU!!!
omg!!!!!!!! thankyou so so so much!!! it was AWESOME!!
Thank you!!
great presentation
thanks so much
Awesome video! Helped me pull of an A on my test! Thanks:)
Very good explanations, good visuals. Thanks man
This was a great video. Very informative. Oh, and the guy sounds like Michael Weston of Burn Notice.
Thank you!!!
Great video! but which lesson is next?
Great video! Thanks.
very simple and understandable anyway thanks alot!!!!!!!!!!!!
Awesome video! Thanks. :D
THanks so much .
Thank You.
THANK YOU!
Thank you so much
BRILLIANT!!!
It's Neckbeard! (Ben Bernanke)... God, I love my econ teacher...
was a great video although it would have been great to have shown the use of the monetary policy in the UK
thanks so much for this =)
thank you
Well explained video !!
THANKYOU SO MUCH COULDN'T HAVE DONE IT BETTER!!!
Thank You!!!! It was an excellent explanation of MP ! Now I am rdy for my exam and pass my class lol :P
what is the name of the song in the beginning of the video? cheers
Thanks Alot
Great video. Summed it up better than my professor who wrote our book haha. One question: can't commercial banks also borrow from other commercial banks, not just the FED? My final is an an hour and just wanted to make sure!
They can borrow from other banks. Sorry I'm 5 months too late
very good
what's the intro song?
Thank you! Easy to understand, best video
How was money created before the Fed?
gud one
In “Occupying Chairlifts” a simple rule tweak on inheritance ends up changing the direction and purpose of modern human life! Here’s a fair way to transition forward to where we’re rewarded for cooperating and creating instead of competing and conquering.
It's something specific we can demand. If this isnt the best answer, at least we’re thinking about what might be. Are we really just this close to having it work right?
Oh yeah, it's a Ski movie! “Occupying Chairlifts” on UA-cam!
great
Is the discount rate same as the overnight rate? I'm in Canada...
Melinda Hanna Not necessarily. There are three discount rates: prime, secondary and seasonal. Currently 1.5%, 2%, and 1% respectively. These are the rates banks pay if they need to come to the Fed for emergency funds - which no banks use currently.
There is also the Fed Funds target rate (range) for when banks borrow from each other overnight. This rate (range) is the one everyone talks about when they say "the Fed is raising rates." This video is outdated as it does not mention the two most important rates that control the fed funds range: Interest in Excess Reserves and the Offering Rate for Overnight Reverse Repurchase Agreements.
The Interest on Excess Reserves Rate is the rate that the Fed pays banks for their reserve balances and functions as a ceiling for the Fed Runds range "pulling" money market rates upward. The Offering Rate on Overnight Reverse Repurchase Agreements sets the floor on the Fed Funds range pushing money market rates upward toward the Interest in Excess Reserves Rate.
The OMOs described in the video haven't taken place in a few years. The Open Market Operations active today are the Interest paid on Excess Reserves and the Overnight Reverse Repurchase Agreements using treasuries.
Does the Fed also buy bonds directly from the govt as well?
Anon P Under QE (quantitative easing, implemented following the financial crisis of 2008) the Fed began purchasing bonds directly from the government. This program ended a couple years ago.
Wow
👍👌👍👌
Jason!
I can't appreciate you more
u should be my lecturer
Econ 101 should be required courses in college. Many adults don't realize that money represents a coupon to you that says, I've contributed to society by providing value in the form of wealth creation, and I can exchange these coupons with other wealth creators for their contributions to society (goods and services). Bernie Sanders' idea of wealth creation is hiring someone to dig a hole and then fill it up again, literally.
Damn, even with this great video I'm confused... I think I'm just too stupid for this.
My exam is going to be a disaster.
me and you both
sigourneysworld me and you both
10q so much :)
Sha370z, are you sure you don't mean that the national debt is over 16-trillion?
Oh good so that makes two of us.......bula
i think i would fail my exam if i never found this video
the fed loan over 16 trillion and more
and people hatin on justin bieber lol smh
NO do your homework the fed Audit was in jul 2011
It looks like everyone is borrowing money or purchasing bonds with interest and interest is forbidden in Islam how do Islamic Banks implement their monetary policy.
THIS was the most outrageous explanation after comprehending the massive difference between “money/dollars” and “CREDIT” ….
Its created by us - we are the direct source - we are the true bank and creditor!
Shame on all of you pretending to “loan” ANYTHING
This video is boring.. Lets make some buttons
BS! The Fed is a private club that collects public wealth and redistributes that wealth and keeps some of that wealth. IMPORTANT! wealth is only created when natural resources are changed into useful, measurable products. The Fed DOES NOT create wealth, a useful product. Thus the Fed. decreases the value of the dollar every year
First we had metal gold dollars, value decreased in paper gold IOUs, then the dollar value decreased to the Fed. paper silver note, then the value decreased to the Fed. reserve paper note. Take a dollar and read what it states on the top. FED RESERVE NOTE, not gold, not silver. Forget the BS. check the value of one Oz of gold in 1933 against the value today.