i love this channel because it's not biased. it takes all major economic theory in a easy and elegant model(monetarist, keynesian, and Real Business Cycle Theory). Thanks to this channel now i'm more open minded to new economic way of thinking. Thanks guys :)
you all probably dont give a shit but does anyone know of a tool to get back into an instagram account?? I stupidly lost the password. I would love any tricks you can give me
Marginal Revolution University: "Government can't keep growing spending at a higher rate forever...because in the long run, government spending can't grow faster than the economy grows" Federal Reserve: Hold my beer.
They use consumer- and producer-surveys to measure the level of confidence in the economy, and look at measurements of the total level of "fear" or lack of confidence in the economy, such as the "Vix"-index. fred.stlouisfed.org/series/VIXCLS
Isn't 2:00 statement wrong? AS moves back yes but with a price change. A lot of other universities and sources teach that. Or is it just because we have inflation on the Y axis here and not price level?
Why does government spending do not increase the money supply? If the government is deficit spending, does that not mean that as long as the debt is not payed, the money supply is being increased?
Legit question: What are the consequences of an increase in currency supply and a decrease in velocity when interest rate are to 0??? Both in a short term and a long term? Basically... the current situation! To me look like the Weimar Republic (Germany 1919-1933). Will this have the same or similar economical consequences? Print money + low velocity follow by higher velocity and keep printing = deflation follow by Hyperinflation ????
It simply means that companies moves production from the future into the present, using the assumption that companies are rational actors that always wants to sell all of their production at some point.
I'm a bit confused about this as well. I believe that as long as it's a final good, then an unsold product counts in real GDP. However, perhaps econ theory assumes that everything that is produced will be sold. So, if there's an unsold product, that has to mean the economy isn't in equilibrium. Thus, the unsold product won't count as part of Consumption, as it should be if it was to be enjoyed by consumers. Rather, it will count as part of Investment, as part of the "I" in "Y = C + I + G + Xn" In fact, I think that the I (Investment) itself is comprised by "gross fixed capital formation" + "Change in stocks or Inventory", and unsold product is part of inventory. I = Gross Fixed Capital Formation + Change in Stocks, or Inventory In that way, the unsold product is included in GDP and, therefore, in the equation GDP = C + I + G + Xn Sources: Page 4 of slideplayer.com/slide/7756724/ Undergrad classes at uni
In the very phrase "velocity of circulation" embodies a false concept. Money does not literally circulate. This is a metaphor Money is exchanged for goods and services. It is hardly possible to spend money without, by the same action, buying goods. Therefore it is hardly possible to speed up the velocity of circulation of money without speeding up to an approximately equal extent the velocity of circulation of goods. And if one does this the exchange value of the money unit is not thereby depressed.
i love this channel because it's not biased. it takes all major economic theory in a easy and elegant model(monetarist, keynesian, and Real Business Cycle Theory).
Thanks to this channel now i'm more open minded to new economic way of thinking.
Thanks guys :)
They're libertarian, but moderates, not ideological like the Austrians
you all probably dont give a shit but does anyone know of a tool to get back into an instagram account??
I stupidly lost the password. I would love any tricks you can give me
este vejito ensena mejor que mi profe! thank you so much for this I highly appreciate your content.
Marginal Revolution University: "Government can't keep growing spending at a higher rate forever...because in the long run, government spending can't grow faster than the economy grows"
Federal Reserve: Hold my beer.
Y'all are my AP Macro heroes!
Thanks for great video!
How does a neoclassical economist measure animal spirits?
They use consumer- and producer-surveys to measure the level of confidence in the economy, and look at measurements of the total level of "fear" or lack of confidence in the economy, such as the "Vix"-index. fred.stlouisfed.org/series/VIXCLS
Isn't 2:00 statement wrong? AS moves back yes but with a price change. A lot of other universities and sources teach that. Or is it just because we have inflation on the Y axis here and not price level?
Amazing!!!!
Why does government spending do not increase the money supply? If the government is deficit spending, does that not mean that as long as the debt is not payed, the money supply is being increased?
This video gave me some new ideas to try
Thanks again!
Legit question: What are the consequences of an increase in currency supply and a decrease in velocity when interest rate are to 0??? Both in a short term and a long term? Basically... the current situation! To me look like the Weimar Republic (Germany 1919-1933). Will this have the same or similar economical consequences?
Print money + low velocity follow by higher velocity and keep printing = deflation follow by Hyperinflation ????
i have a question: do unsold products counts in real gdp?
thanks
So, is total spending(MxV) still equal to nominal gdp(PxY)?
Yes, they count as inventory
It simply means that companies moves production from the future into the present, using the assumption that companies are rational actors that always wants to sell all of their production at some point.
I'm a bit confused about this as well.
I believe that as long as it's a final good, then an unsold product counts in real GDP.
However, perhaps econ theory assumes that everything that is produced will be sold. So, if there's an unsold product, that has to mean the economy isn't in equilibrium.
Thus, the unsold product won't count as part of Consumption, as it should be if it was to be enjoyed by consumers.
Rather, it will count as part of Investment, as part of the "I" in
"Y = C + I + G + Xn"
In fact, I think that the I (Investment) itself is comprised by "gross fixed capital formation" + "Change in stocks or Inventory", and unsold product is part of inventory.
I = Gross Fixed Capital Formation + Change in Stocks, or Inventory
In that way, the unsold product is included in GDP and, therefore, in the equation
GDP = C + I + G + Xn
Sources:
Page 4 of slideplayer.com/slide/7756724/
Undergrad classes at uni
Yes, economics sometimes is a bit confusing but i love it
Hi, ok then if this happens all the time how can you escape or manage it?
What happens to the SRAS when the LRAS shifts upward? Why?
Great ...
What's the difference between MV = PV and M + V = P + Y? Seems like the same variables but never seen it with a plus sign...?
Hi Ben,
Latter form of the equation is in growth rates - see here for where Alex introduces this: ruclips.net/video/gi7jx5IJtik/видео.html
-Roman
Oh, thank you!
In the very phrase "velocity of circulation" embodies a false concept. Money does not literally circulate. This is a metaphor Money is exchanged for goods and services. It is hardly possible to spend money without, by the same action, buying goods. Therefore it is hardly possible to speed up the velocity of circulation of money without speeding up to an approximately equal extent the velocity of circulation of goods. And if one does this the exchange value of the money unit is not thereby depressed.
So increase spending grows an economy and increased saving slows an economy? Sounds like a backwards theory to me.
nods head
THAT FACE IS TOO CLOSE PLZ