Macro: Unit 2.6 -- Classical v. Keynesian Theories

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  • Опубліковано 13 січ 2025

КОМЕНТАРІ • 197

  • @svvetlanalana
    @svvetlanalana 6 років тому +276

    omg this is perfect. You literally just wrote my entire exam for me!!!

    • @YouWillLoveEconomics
      @YouWillLoveEconomics  6 років тому +22

      Glad I could help!

    • @theparadigm8149
      @theparadigm8149 3 роки тому +18

      I hope you don’t literally mean “literally” in this case… 🤭 that would be plagiarism!

  • @roseydays
    @roseydays 6 років тому +154

    i loved the way you used the graph to show a real live example of the great depression, made a lot of sense

  • @grantrobertronquilloiii
    @grantrobertronquilloiii 4 роки тому +82

    It helped me a lot understanding this topic especially during this COVID-19 pandemic. My professor just gave us a handout and voila.. exam is real. Thanks for explaining this as briefly.

  • @madampresident2053
    @madampresident2053 2 роки тому +4

    Watching this video all the way from South Africa University of South Africa 3rd year student. Thank you for making me understand Keynes in a simple way.

  • @suhaila2055
    @suhaila2055 6 років тому +10

    I couldn't understand the difference between the two theories and I searched through the internet but nothing came close to this video. Thank you so much!

    • @YouWillLoveEconomics
      @YouWillLoveEconomics  6 років тому +4

      This is fantastic to hear! Glad it was helpful. Thanks for the feedback!

  • @vinboscotomy7128
    @vinboscotomy7128 4 роки тому +1

    Just Amazing. You should be named as the - "The Best Economics teacher". After 1 year of learning macroeconomics, This 10 mins helped learn more than Ever.

  • @TheRAYZ87
    @TheRAYZ87 6 років тому +93

    I've been listening to my macro professor for a month talking about these theories and couldnt understand a single word she was saying. problem solved in 13 minutes xD

    • @YouWillLoveEconomics
      @YouWillLoveEconomics  6 років тому +21

      This may be the best comment I’ve received yet! I’m so glad that I can help you when you need it most. Spread the word! Thanks for the feedback and the support!

  • @feliciah3705
    @feliciah3705 4 роки тому +6

    I’m from germany and we’re learning behavioural economics in english at university.. and this really helped me, since our professors are so bad at explaining stuff in a foreign language! Great job!

  • @2Fa2Bu
    @2Fa2Bu 4 роки тому +4

    this is one of the best explanations of keysesian theory. thank you so much.

  • @hossainjoki3146
    @hossainjoki3146 4 роки тому +2

    What I did not understand after hours of lecture and study; Got it quite clear in 13 mins! Thanks a lot!

  • @UnknownKnower2
    @UnknownKnower2 6 років тому

    This is an incredible explanation. You did what books and professors failed to do. Thank you god for bringing this to me.

  • @sohanchanda8042
    @sohanchanda8042 3 роки тому +1

    really the best explanation seen so far really this 13 minutes is much better than the semester explanation in colleges

  • @alicenyakundi4568
    @alicenyakundi4568 4 роки тому +2

    this is a very wonderful class that enlightened my mind in economics.my teacher gave me very mere explanation but now am at a position of helping others to understand.

  • @islandchic5345
    @islandchic5345 3 роки тому

    Just wanted to leave a thank you comments section . Your video was very helpful, with it I was able to easily grasp the concepts

  • @oc_vatsal_1197
    @oc_vatsal_1197 4 роки тому +15

    Could you please make a video on how Keynesian Theory applies in today's modern world.
    Amazing videos!!

    • @NewhamMatt
      @NewhamMatt 3 роки тому

      I'd love to see a video of how Keynesian theory either failed or failed to be correctly applied in the recession of the 1970s.

    • @Mpivovitz
      @Mpivovitz 3 роки тому

      @@NewhamMatt the 1970s was a supply side shock (oil shock) which caused input prices to rise and hence inflation.

  • @lifeisnotajokee
    @lifeisnotajokee 2 роки тому

    Hi Mr. Willis, I didn't just love economics but also your style of teaching.

  • @cheyannecummings3655
    @cheyannecummings3655 6 років тому +10

    This was very helpful. Your delivery was effective.
    Thank you

  • @robertbuen7390
    @robertbuen7390 3 роки тому +1

    Glad I found this video. Helped me understand my weekly ECON lesson in under 15 minutes!

  • @anindyamitra2880
    @anindyamitra2880 4 роки тому +1

    As an economics enthusiast ,
    this is gold. Great explanation

  • @sujeetkumar-pd9gd
    @sujeetkumar-pd9gd 6 років тому +2

    Your 13 minutes video was better than three month session of my teacher. Thanks for making it.
    If possible please make video on application of game theory in macro/micro economics

  • @brisa5104
    @brisa5104 2 роки тому

    I like how describle every detail in a single video. You're fun and can teach better than my professor

  • @ashfaqahmad4172
    @ashfaqahmad4172 6 років тому +6

    thank you for helping others! really this was my first and fruitful experience. very clear and interesting short lecture!

  • @Dicepit12
    @Dicepit12 4 роки тому +2

    Love it, Thank you, I needed some clarity for the BEC portion of the CPA. That was perfect.

  • @kadityasrinivas1665
    @kadityasrinivas1665 3 роки тому

    This guy is a genius in teaching concepts.

  • @anshudwivedi326
    @anshudwivedi326 4 роки тому

    This is by far the best video which explained Keynesian Theory

  • @busingyenamara5620
    @busingyenamara5620 2 роки тому

    Thank you.you're heaven sent 🥺

  • @saminaa6802
    @saminaa6802 5 років тому +2

    Thank you so much! This helped me understand everything the night before exam

  • @johnsolomonlegara2248
    @johnsolomonlegara2248 5 років тому +9

    Honestly, this is a gift from heaven hahaha

  • @nitinkarnwal519
    @nitinkarnwal519 4 роки тому +1

    Really cleared all the confusion. Thank you Will.

  • @CM-tp6un
    @CM-tp6un 5 років тому +3

    Do you have anywhere we can donate to sustain your channel? This channels' explanation and execution are unmatched.

  • @21dolphin123
    @21dolphin123 3 роки тому

    Fantastic, this guys a Proffesional.

  • @xaleavemealone15
    @xaleavemealone15 6 років тому +6

    Could you also make lecture videos on international trade theory and econometrics? loved your presentations!

  • @erinf4y
    @erinf4y 4 роки тому

    I had to watch in .75 playback speed to follow but thank you so much!!! this was so clear and to-the-point

  • @leohuo4263
    @leohuo4263 2 роки тому +3

    I really needed some background knowledge into how these 2 theories worked in order to do my explanation of the AD-AS graph

  • @tapipayang933
    @tapipayang933 6 років тому +11

    Thanks a lot.Though I had to decrease the playback speed to .75x in order to think and understand what you were saying. 😂 Your video editing was very good and helpful too.💗 Subscribed to your channel. Keep up the good work.

  • @jakkulapraveen611
    @jakkulapraveen611 4 роки тому +1

    Nice presentation and explanation.....thank you

  • @thabisomokhosoa
    @thabisomokhosoa 3 роки тому

    Absolute gems here man

  • @janesele8653
    @janesele8653 3 роки тому

    God bless you, I really enjoyed watching you and I understood it . Thank you so much

  • @SwatiPrasad0925
    @SwatiPrasad0925 3 роки тому

    The best explanation ever! Thank you!!

  • @tzutzu6455
    @tzutzu6455 6 років тому +10

    THANK YOU YOU EXPLAINED IT BETTER THAN MY TEACHER!

  • @tlee5284
    @tlee5284 7 років тому +3

    Thanks man , this is just one of the greatest

  • @alexdaniel7137
    @alexdaniel7137 4 роки тому

    i must love economics you did it.i know you should make me great again am from tanzania

  • @omkumar4717
    @omkumar4717 2 роки тому

    it is very goog and conceptual video. liked it

  • @soumyajeetmitra6958
    @soumyajeetmitra6958 3 роки тому

    THANK YOU SIR for your short brief history and summary based answer to this much asked question☺️

  • @zebrapurple13
    @zebrapurple13 3 роки тому +12

    “Landlord's right has its origin in robbery. The landlords, like all other men, love to reap where they never sowed, and demand a rent for even the natural produce of the earth" - Adam Smith

    • @imnotgeorge5490
      @imnotgeorge5490 2 роки тому

      Here's another good one from Mr. Smith:
      "The proposal of any new law or regulation of commerce which comes from this order, ought always to be listened to with great precaution, and ought never to be adopted till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention. It comes from an order of men, whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even to oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it."
      Chapter XI, Part III, Conclusion of the Chapter, p. 292 (in my copy)

  • @polypoly7966
    @polypoly7966 4 роки тому

    Very persuasive. The simple angled line of other explanations is replaced by the kinks and Keynesian zone. Deficit spending to the rescue. So far so good....but how do we get the stimulus reversed without causing another slump? Your video neatly made the point for rescue spending, but when do we tax to cancel the new fiat dollars? Greatly enjoyed the lesson.

  • @hakeemkazni4241
    @hakeemkazni4241 4 роки тому +1

    On point. Thats a 60 page textbook right there in 13 minutes.

  • @darictesfaye3808
    @darictesfaye3808 3 роки тому

    Thank you for a very clear and interesting presentation of the topic!Just Perfect!

  • @idealjyo6671
    @idealjyo6671 2 роки тому

    He summarised a 95 pages chapter for me, thanks 🙏

  • @paulaewert9494
    @paulaewert9494 2 роки тому

    This was an awesome explanation! thank you so much for sharing your knowledge with us!!

  • @wajidkarimkhan9717
    @wajidkarimkhan9717 5 років тому +1

    Sir you are phenomenal

  • @robinmanley9946
    @robinmanley9946 2 роки тому

    Thanks for the clear explaining 😊

  • @kristenscanlon3914
    @kristenscanlon3914 4 роки тому

    Thank u so much for this video! You explained things so well!

  • @HankHill1
    @HankHill1 6 років тому

    What an excellent breakdown. Awesome.

  • @umarfarooqmulla9016
    @umarfarooqmulla9016 3 роки тому

    thank you sir ....it helped me a lot ....!!!!

  • @froggy1854
    @froggy1854 2 роки тому

    thank you so much this really helped me !

  • @gabrielyeboah9177
    @gabrielyeboah9177 3 роки тому

    This is a great presentation

  • @Baqiabdulaal
    @Baqiabdulaal 4 роки тому +1

    Clear explanation

  • @marcoyolo1095
    @marcoyolo1095 5 років тому +1

    Nice video man love from Deutschland

  • @arunanitha7424
    @arunanitha7424 3 роки тому

    Thank you sir. It was held full.

  • @toxicmaniax5719
    @toxicmaniax5719 4 роки тому +3

    Watching this b4 exam tomorrow

  • @edfl4913
    @edfl4913 2 роки тому

    Great video and explanation!

  • @deborasteinke8343
    @deborasteinke8343 3 роки тому

    I LOVE ECONOMICS W YOU

  • @dgfcl56ify
    @dgfcl56ify 4 роки тому

    thank you SO MUCH! Super helpful, I actually enjoyed economics for once, haha!

  • @bonkchoy7936
    @bonkchoy7936 2 роки тому

    fantastic video
    thank you so much for your effort

  • @kaiyunng1057
    @kaiyunng1057 4 роки тому

    Amazing explanation, it helps a lot, thanks!

  • @darshitagarwal3850
    @darshitagarwal3850 4 роки тому

    The video is really helpful, thank you.

  • @sabinef2872
    @sabinef2872 6 років тому +1

    Thanks. Your video was great and very helpful.

  • @samriddhmangotra
    @samriddhmangotra 4 роки тому

    Thanks...excellent video mate..

  • @regianealvesdbj
    @regianealvesdbj 4 роки тому

    Thank you so much for this lesson. It helped me a lot

  • @mmetally
    @mmetally 4 роки тому

    Great Video..thanks man!

  • @jiwangurung9780
    @jiwangurung9780 6 років тому +1

    This was a great help 👍👍👍

    • @YouWillLoveEconomics
      @YouWillLoveEconomics  6 років тому

      Awesome! I’m glad you found it helpful. Thanks for the feedback and the support!

  • @graceanne3065
    @graceanne3065 6 років тому

    Very well simplified and expounded. Have you done one on Institutional Economics and Alfred Marshall?

  • @b-io
    @b-io 6 років тому

    Very nice and concise! Thank you!

  • @toseeornot2see
    @toseeornot2see 3 роки тому

    To me, it seems that in a lot of these theories, homogeneity exists to a great degree. Humans all respond to change in a "unified" or "same" way. Also, all these theories were formulated before modern computers, AI and cellphones and blockchain so many different technologies. Keynes and Freidman may never have imagined a decentralised crypto currency and it's implications for society.

  • @candaceb2470
    @candaceb2470 2 роки тому

    you made this so plain and simple thank you! i wish you were my professor lol

  • @madportuguese2006
    @madportuguese2006 3 роки тому

    A very interesting and helpfull explanation

  • @nthperson
    @nthperson 5 років тому

    If only Keynes had remembered what Winston Churchill had warned about the destructive impact of monopolies and monopoly privilege. In 1909, campaigning for a seat in the House of Commons Churchill told the British people that monopoly was the inherited enemy of democracy and of justice. He added that the monopoly of land is "the mother of all monopolies." Churchill's solution echoed the teachings of the Scot political economist Patrick Edward Dove. Government should impose an annual tax on those who control land equal to the potential annual rental value of whatever land is held. Keynes somehow managed to ignored the growing redistribution of wealth associated with the concentrated control over land (broadly defined). Land blessed with natural resources to exploit was climbing in value. The same pattern was occurring in the cities where commerce occurred and population was increasing.

  • @monalizasee1645
    @monalizasee1645 5 років тому

    Thanks for explaining it well 😊

  • @florenceledesma1629
    @florenceledesma1629 5 років тому

    Thank you for this very helpful video.

  • @mamadasdrotaz
    @mamadasdrotaz 5 років тому

    Question: In the classical model is the AS curve for the short or long run ?

  • @curtisw187
    @curtisw187 6 років тому +1

    Thanks so much, very clear and helpful

  • @Abdul-Y
    @Abdul-Y 3 роки тому +1

    classical economics for normal times and Keynesian for recessions

  • @papunsahu6519
    @papunsahu6519 5 років тому

    Sir your video is just amazing ,,,,,tq sir

  • @RupJyotiGeoRJ
    @RupJyotiGeoRJ 6 років тому

    Outline Keynes criticism of the classical full employment equilibrium? ?

  • @nicolodesandre120
    @nicolodesandre120 6 років тому +1

    Why do we assume that aggregate supply is fixed?

  • @kentmusgrove5038
    @kentmusgrove5038 2 роки тому +1

    I always thought that there was a lot of "voodoo" in economics. This lecture starts with the premise that economics "has laws", yet then goes on to talk about the importance of the invisible hand. I am more classical than Keynesian, but all economics depends upon customer preference, and un-measureable satisfaction.

    • @imnotgeorge5490
      @imnotgeorge5490 2 роки тому

      @@pain5835 Are you saying von Mises is correct, or just pointing out his debunked theory?
      It's actually need and desire. When need and desire outweigh price, the purchase will be made, no matter the cost, assuming the entity can afford it. When need and desire are not there, it won't be purchased, no matter how low the price. Please do not confuse microeconomics and econometrics with macroeconomics. They are not the same.

  • @sid1680
    @sid1680 2 роки тому

    The Classical theory, although based on the laissez-faire principle, does have a role for Government. Oversee monetary supply and ensure it is proportionate to growth in output. Agree the economy entered the Keynesian range during the depression. However, the cause was the failure to increase the monetary supply. It resulted in banks and businesses going bust, and concomitant unemployment. The Classical Theory would have worked quite well if only the monetary supply had been increased in the period of monetary contraction that brought on the depression. In the end, Government did step in, a little too late though, with monetary expansion (the same kind of response that could have been provided earlier).
    In essence, the laissez-faire principle works well. It was Government action of not increasing the monetary supply that brought on the depression.

    • @imnotgeorge5490
      @imnotgeorge5490 2 роки тому

      Try reading "The Great Crash, 1929" by John Kenneth Galbraith, "The Myth of a Rational Market" by Justin Fox, or "Lords of Finance: The Bankers Who Broke the World" by Liaquat Ahamed for a deeper, and more correct view of how The Great Depression occurred. A slavish adherence to Classical economics (aka neoliberal, neoclassical, and the Austrian school) was the cause, not the cure.

    • @imnotgeorge5490
      @imnotgeorge5490 2 роки тому

      P.S. There are many more I could recommend since I've been exploring the subject of macroeconomics for the last 12+ years. No I'm not an economist, nor do I pretend to be but I am well read in the subject, with some economics education.

  • @PeepLinks
    @PeepLinks 6 років тому

    Thank you! This was very helpful!

  • @S3rvOnpb
    @S3rvOnpb 4 роки тому

    I only read 2 out of the 9 macrobook and you helped me in my paper with 13 mins. Lol

  • @hanaadil8924
    @hanaadil8924 5 років тому

    Thank you, very helpful video!

  • @xkurly9874
    @xkurly9874 6 років тому

    I don't understand how the classical theory addresses the business cycle however and the failures of the market in that respect?

  • @basiaklos6925
    @basiaklos6925 6 років тому +1

    Thank you! So helpful!

  • @heathersockrider5428
    @heathersockrider5428 4 роки тому

    Well done. I hope it is okay for me to share this with friends, as a tool, so they understand my viewpoint.

  • @abhisekmishra2817
    @abhisekmishra2817 3 роки тому

    Hello Sir, I wanted to know what other theories are there apart from these ? Basically what different schools of thoughts?
    Thank you

  • @SA-pi3zm
    @SA-pi3zm 4 роки тому

    You should try and work with PBS, we need a national educator on economics.

  • @EwertonSilveiraAuckland
    @EwertonSilveiraAuckland 3 роки тому

    Great, perferct ... Thank you

  • @warisch8046
    @warisch8046 6 років тому

    interesting,and helpful👍👍👍

  • @ioanacoutinho2572
    @ioanacoutinho2572 5 років тому

    Thank you so much 😊

  • @dewantahmid95
    @dewantahmid95 3 роки тому

    I started to watch the video but I already subscribed the channel seeing the name! :v