thank you for these videos. I have 1 question... do interest rates (in general) set by central banks, or private banks, directly impact the Forex market?
@FreeSoul790 central banks interest rate can affect both private bank and the Forex. like the OMO if the central banks would increase it's rates to incr. the demand for T-bond can, which decrease the money in an economy which increase its value in the FOREX. now the private banks only relay on corp. bond rate and corps. base their rates on CB's rates. i am not sure about it but i think its right and my explanation is not complete due to the limit of char. here hope i have helped even a little
Is there a correlation between the amount of securities a government sells and the value of its currency? Who sets the rate of interest on securities? Is that also the Federal Reserve? Does the interest rate on securities have any effect on other interest rates?
@Xenu That's a lot of questions!! Yes, because the securities market affects the money supply (see the video on Monetary policy), it affects both the currency value and the market interest rate. Most rates are market (i.e., supply and demand) driven, but some, like the discount rate in the US, are set directly by the Central Bank.
The Chinese currency had been pegged before it became a significant net exporter. It was initially for the purpose of simplying monetary control I read.
Besides, China has a import-re-export economy, the added value isn't much compared to that by other countries. In order to level the US's balance of trade purely by forcing up the RMB, the appreciation will be prohibitively and unnecessarily large.
@liebstandarteadolf Hopefully I don't come off as viewing the practice of pegging as right or wrong, just stating why it is that the US complains about it...? Thanks for the comment.
As you well know the voters have no say so what soever in monetary policy because the central bank, the Fed in our case is independent from the government therefore not held accountable by the people or the members of the government. Your videos are very helpful & easy to follow, thanks. I just wanted to point out that it's not the government who control the supply the money its the people over at the billionaire's club aka central bank.
I do not normally challenge teachers unless I believe there is a mistake, but in this case & with all due respect is it not true that in most major countries like the G20 economies including our own country, The government does NOT control the supply of money, or even have a direct say so in monetary policy. If this be true, I believe you made an error at 2:38 in this video where you state that the government (the voters) control supply of money
Whoa whoa. This video assumes the appreciation or depreciation of a currency is only due to it's demand, using that assumption it assumes that appreciating dollars make others buy less goods.
MOST of the time, appreciation/depreciation with currency is from new money creation rate from the central bank. When this is the case (as it mostly is) a cheaper currency buys less of what it did before. There's actually more incentive for appreciation. Money itself gains value.
@sirellyn I hope that's not the impression that I gave -- I had hoped it was clear that the equilibrium price of a currency is market-driven (i.e., demand AND supply)? In fact, when I talk about a country manipulating the value of its own currency, that definitely comes from the supply side . . .
Very good video, one question. As the Canadian dollar depreciates and demand for Canadian goods increase from abroad, surely this increases demand for Canadian dollar leading to an appreciation in the Canadian dollar?
Euro, or eurodollar? I'm guessing you mean the first, which is the currency used by (most) members of the European Union. The Eurodollar is something very different...
In this video, all comparisons are bilateral, or only between two currencies, so the only way the euro would have an effect on say, the value of the US$ vs Can$, is if Canadians suddenly dump their holdings of US dollars because they want to hold Euros instead. Then the value of the US$ would fall relative to the Canadian dollar.
Thank god you saved my live.
uyenle57 1 month ago
thank you for these videos. I have 1 question... do interest rates (in general) set by central banks, or private banks, directly impact the Forex market?
FreeSoul790 2 months ago
@FreeSoul790 central banks interest rate can affect both private bank and the Forex. like the OMO if the central banks would increase it's rates to incr. the demand for T-bond can, which decrease the money in an economy which increase its value in the FOREX. now the private banks only relay on corp. bond rate and corps. base their rates on CB's rates. i am not sure about it but i think its right and my explanation is not complete due to the limit of char. here hope i have helped even a little
bladewolf390 2 weeks ago
i wish i could give you my tuition! my macro professor was horrible this year! keep up the good work!
shelton701 3 months ago in playlist A Macroeconomics Lecture Playlist
I LOVE MJMFOODIE!!!!
Explains everything soo well, unlike my uni lecturers lol :)
God Bless yaaa :D
mrmuhumuza1 4 months ago
Ignore this comment. This is just to prove to my ECON-1 teacher that I watch things she tells me to watch.
WeAreAirborne 4 months ago 2
Is there a correlation between the amount of securities a government sells and the value of its currency? Who sets the rate of interest on securities? Is that also the Federal Reserve? Does the interest rate on securities have any effect on other interest rates?
Xenu 5 months ago
@Xenu That's a lot of questions!! Yes, because the securities market affects the money supply (see the video on Monetary policy), it affects both the currency value and the market interest rate. Most rates are market (i.e., supply and demand) driven, but some, like the discount rate in the US, are set directly by the Central Bank.
mjmfoodie 5 months ago
grear video --- from a cfa and mba grad .. cheers!
StephenEmmanuel 6 months ago
ASSUMING THAT CHINA MANAGE ITS CURRENCY TO HAVE A TRADE SURPLUS WITH THE REST OF THE WORLD IS DOWNRIGHT STUPID. LOL
OpenTheTrollGate 7 months ago
GENIUS!!!
TheExtraCoffee 8 months ago
The Chinese currency had been pegged before it became a significant net exporter. It was initially for the purpose of simplying monetary control I read.
Besides, China has a import-re-export economy, the added value isn't much compared to that by other countries. In order to level the US's balance of trade purely by forcing up the RMB, the appreciation will be prohibitively and unnecessarily large.
liebstandarteadolf 9 months ago
@liebstandarteadolf Hopefully I don't come off as viewing the practice of pegging as right or wrong, just stating why it is that the US complains about it...? Thanks for the comment.
mjmfoodie 9 months ago
complete;y clear !
MrBIOSkunk 9 months ago
Thank you!
unrivaled37 10 months ago
really nice for my HL econ exam :)
LatinaSarah 10 months ago in playlist Economics
i love des vids!!! i love it how easily explain!!! tank u sooooooooooo mch!!! <3
awestrucklove 10 months ago
you have been very helpful thank you :) btw do you draw the pictures yourself ?
blazemk 1 year ago
awesome! thank you very much!
Anduy 1 year ago
good job! great narrator.
milesflies 1 year ago
This has been flagged as spam show
As you well know the voters have no say so what soever in monetary policy because the central bank, the Fed in our case is independent from the government therefore not held accountable by the people or the members of the government. Your videos are very helpful & easy to follow, thanks. I just wanted to point out that it's not the government who control the supply the money its the people over at the billionaire's club aka central bank.
ElSeniorNuevo 1 year ago
Comment removed
ElSeniorNuevo 1 year ago
This has been flagged as spam show
I do not normally challenge teachers unless I believe there is a mistake, but in this case & with all due respect is it not true that in most major countries like the G20 economies including our own country, The government does NOT control the supply of money, or even have a direct say so in monetary policy. If this be true, I believe you made an error at 2:38 in this video where you state that the government (the voters) control supply of money
ElSeniorNuevo 1 year ago
Comment removed
ElSeniorNuevo 1 year ago
Comment removed
ElSeniorNuevo 1 year ago
Whoa whoa. This video assumes the appreciation or depreciation of a currency is only due to it's demand, using that assumption it assumes that appreciating dollars make others buy less goods.
MOST of the time, appreciation/depreciation with currency is from new money creation rate from the central bank. When this is the case (as it mostly is) a cheaper currency buys less of what it did before. There's actually more incentive for appreciation. Money itself gains value.
sirellyn 1 year ago
@sirellyn I hope that's not the impression that I gave -- I had hoped it was clear that the equilibrium price of a currency is market-driven (i.e., demand AND supply)? In fact, when I talk about a country manipulating the value of its own currency, that definitely comes from the supply side . . .
mjmfoodie 1 year ago 3
@sirellyn the previous video covers that
HazeHazeGoAway 1 year ago
You are exactly correct. So theoretically, overvalued or undervalued currencies will self-correct by that mechanism.
mjmfoodie 1 year ago
Very good video, one question. As the Canadian dollar depreciates and demand for Canadian goods increase from abroad, surely this increases demand for Canadian dollar leading to an appreciation in the Canadian dollar?
SomethingSoOriginal 1 year ago
I mean Euro. Now I get it. Thanks for the help!
opap1000 1 year ago
Euro, or eurodollar? I'm guessing you mean the first, which is the currency used by (most) members of the European Union. The Eurodollar is something very different...
In this video, all comparisons are bilateral, or only between two currencies, so the only way the euro would have an effect on say, the value of the US$ vs Can$, is if Canadians suddenly dump their holdings of US dollars because they want to hold Euros instead. Then the value of the US$ would fall relative to the Canadian dollar.
mjmfoodie 1 year ago
Does the presence of the Euro Dollar have any effect on the exchange rate between 2 currencies? For example the US Dollar and the Canadian Dollar?
opap1000 1 year ago
Marry u can't imagine how much help u've provided me with this one, THANK U VERY MUCH
creatively100 1 year ago
very helpful!
bubblyface17 1 year ago