@ghg6541 Fed impacts level of bank deposits/loans via policy tools: 1) reserve requirement: amount that bank is required to hold in reserve as a % of deposits. If reserve req. lower, bank can lend more, increase money supply and money ends up as deposits at other banks. Another Fed tool is discount rate at which banks borrow at - if rate is lower, banks willl borrow more and lend more. Thirdly open market operations - best to look at on Fed site as not enough space here. Hope it helps, Michael
Thanks for your videos and please keep them coming. Can you do a series on the prospect of a "currency war". I don't have a full grasp on the macro principles and some of the micro implications. Thanks - JL
Dear Michael: I would like to offer some suggestions to improve your videos. It's a thumb rule in teaching and particularly in Economics that you substantiate a line of argument or reasoning with examples from the real world. Your video didn't have any! The next point is you should utilize charts or graphs so as to make it easy for others to quickly grasp what you are saying. I hope you will implement these suggestions and notice the difference for yourself. Thank you and Good luck!
@forexyard In and of itself not well - having said that, whenever there is more risk-aversion (and markets trade lower) investors still flock to the US dollar for safety - long-term it is not supportive I think. Best regards, Michael.
What the hell do we have a central bank if we are suppose to have a free market economy? Also why does money only expand through borrowing and how do we pay this all back if interest is not created at the same time loan are extended. Looks like debt has to ballon for us to have more so called money(actually this is credit or debt). What a screwed up system we have?
Fiscal policy is the process of taxing citizens to reduce aggregate demand, and spending money. Could you explain to me the process of monetary policy and why it is used?
Yes Sir! But exactly this policy will fail in the next years.....Because the Central Banks did fight every burst of a bubble by creating an even bigger bubble.
Deflation....Hyperinflation....Bankruptcy of States will be our glorious future.
The Central Banks are like mad doctors that wanna fight Cancer with pain killers!
Sounds like something out of a Keynesian textbook. Central banks are the central economic planners of the world. If central banks are such inflation fighters, how do you explain that every single known hyperinflation in the world has occurred with a fiat currency?
keep up the good work. your brief introductions are focused and comprehensive, so it's a nice recapture of these topics to watch them! thanks from japan!
You look like a psycho killer
SuperCutt 7 months ago
Please can you explain in writting why the FED does not control the level of bank deposits and loans.
ghg6541 9 months ago
@ghg6541 Fed impacts level of bank deposits/loans via policy tools: 1) reserve requirement: amount that bank is required to hold in reserve as a % of deposits. If reserve req. lower, bank can lend more, increase money supply and money ends up as deposits at other banks. Another Fed tool is discount rate at which banks borrow at - if rate is lower, banks willl borrow more and lend more. Thirdly open market operations - best to look at on Fed site as not enough space here. Hope it helps, Michael
savingandinvesting 7 months ago
great videos. All of them. I take classes in economy, and you really know what you're talking about
Chaaarge 11 months ago
Thanks for your videos and please keep them coming. Can you do a series on the prospect of a "currency war". I don't have a full grasp on the macro principles and some of the micro implications. Thanks - JL
timelessstudios 1 year ago
Dear Michael: I would like to offer some suggestions to improve your videos. It's a thumb rule in teaching and particularly in Economics that you substantiate a line of argument or reasoning with examples from the real world. Your video didn't have any! The next point is you should utilize charts or graphs so as to make it easy for others to quickly grasp what you are saying. I hope you will implement these suggestions and notice the difference for yourself. Thank you and Good luck!
NTSCPALSECAM 1 year ago
The Fed keeps increasing the monetary supply. How will this affect the dollar?
forexyard 1 year ago
@forexyard In and of itself not well - having said that, whenever there is more risk-aversion (and markets trade lower) investors still flock to the US dollar for safety - long-term it is not supportive I think. Best regards, Michael.
savingandinvesting 1 year ago
What the hell do we have a central bank if we are suppose to have a free market economy? Also why does money only expand through borrowing and how do we pay this all back if interest is not created at the same time loan are extended. Looks like debt has to ballon for us to have more so called money(actually this is credit or debt). What a screwed up system we have?
charronfamilyconnect 1 year ago
very nice
kok123 1 year ago
Fiscal policy is the process of taxing citizens to reduce aggregate demand, and spending money. Could you explain to me the process of monetary policy and why it is used?
MetalBassjunkie420 2 years ago
Yes Sir! But exactly this policy will fail in the next years.....Because the Central Banks did fight every burst of a bubble by creating an even bigger bubble.
Deflation....Hyperinflation....Bankruptcy of States will be our glorious future.
The Central Banks are like mad doctors that wanna fight Cancer with pain killers!
NobodyYou1 2 years ago
Sounds like something out of a Keynesian textbook. Central banks are the central economic planners of the world. If central banks are such inflation fighters, how do you explain that every single known hyperinflation in the world has occurred with a fiat currency?
Estevinyo 2 years ago
I love these. Definetly helped me understand.
SheepEwen 2 years ago
cool
y2yang 2 years ago
keep up the good work. your brief introductions are focused and comprehensive, so it's a nice recapture of these topics to watch them! thanks from japan!
kokri1 2 years ago 2
nice job
street86 3 years ago 4
brilliant work michael. keep up the good work.
drchristos 3 years ago 6