M1 and M2 Money Supply Explained (The Easy Way) | Think Econ

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  • Опубликовано: 8 фев 2025

Комментарии • 16

  • @ThinkEcon
    @ThinkEcon  Год назад +10

    If you found this video helpful, consider supporting the channel by liking the video and subscribing to the channel to see more content like this! :)

  • @h14resells64
    @h14resells64 Год назад +6

    your videos are amazing. please dive deeper into more complex economic topics in this same easy, short and quick teaching style you have. stuff like econometrics explained by you would be amazing.

  • @Sannicolasbrand
    @Sannicolasbrand 28 дней назад +1

    Helpful thank

  • @givemebeidou2446
    @givemebeidou2446 9 месяцев назад +6

    Thank you the explanation is awesome!!

    • @ThinkEcon
      @ThinkEcon  8 месяцев назад +2

      You're very welcome!

  • @Chroniclesofdora
    @Chroniclesofdora Год назад +3

    Hi sir 😭❤️ first of all thanking you for creating such a good channel for us ! I'm a student from India who is studying in 12 grade . For me economics is too difficult. I just sleep in my economic classes 🥲 because i felt it too boring....but i just saw one of your video unexpectedly and omg it's so interesting ❤ When my teacher explained this i never understood anything....but your videos made me understand everything ❤❤ thank you thankyou thankyou so much ❤❤❤

    • @ThinkEcon
      @ThinkEcon  Год назад +1

      I'm really glad to hear that!

  • @SweetbJames
    @SweetbJames 11 месяцев назад +1

    Great video. However, believe that bank reserves is in M0, not M1, since they are not money or near money. Currency in circulation, however, is in both the monetary base M0 and M1.

    • @stevengordon1424
      @stevengordon1424 9 месяцев назад +2

      I believe that the Federal Reserve now includes savings accounts as part of M1, as of 2020. This video is from 2024?

  • @Brazconj
    @Brazconj Год назад

    QUESTION 🙋‍♀️ : I recently keep hearing a phrase “ REPO Facility and Reverse REPO facility “ and that it is getting lower so is that a part of the country’s money supply ?

  • @kimberlyjackson4433
    @kimberlyjackson4433 10 месяцев назад +5

    Savings are now M1

    • @ThinkEcon
      @ThinkEcon  10 месяцев назад +1

      It depends on the liquidity of the account, as liquidity is what differentiates each classification

  • @stevengordon1424
    @stevengordon1424 9 месяцев назад +1

    The statement that bank reserves are part of M1 will be confused with banking ( or federal ) reserves, which the government counts as M0 or MB and is not included with M1 or M2

    • @mmmmmMuffinz
      @mmmmmMuffinz 9 месяцев назад +2

      Banks don't hold reserves anymore. They completely got rid of fractional reserve banking years ago.

    • @ThinkEcon
      @ThinkEcon  9 месяцев назад +1

      @mmmmmMuffinz I think what you mean to say is that the reserve requirement was removed. I assure you that the bank still holds reserves or the system would fail. Banks (in the US as of 2020) aren’t REQUIRED to keep 10% in reserves anymore, that’s all.

    • @stevengordon1424
      @stevengordon1424 9 месяцев назад

      I think there is still a reserve requirement, but it currently is at zero%. However, the government still imposes other liquidity constraints based on the level of risk they evaluate.