Y1 37) Contractionary Monetary Policy - Higher Interest Rates

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  • Опубликовано: 28 сен 2024
  • Contractionary Monetary Policy - Higher Interest Rates. Video covering the consequences of higher interest rates as contractionary monetary policy for the economy, individuals and firms
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Комментарии • 65

  • @GhostfaceGil
    @GhostfaceGil Год назад +188

    I sold my sister to a Guatemalan drug gang to fund the construction of a Dal shrine in my garden

    • @ZTheMoki
      @ZTheMoki Год назад +49

      Phew, i thought i was the only one

    • @timothymeyer3210
      @timothymeyer3210 Год назад +24

      Assess the microeconomic and macroeconomic impacts of an increase in free labour that selling your siblings to slavery may bring

    • @LeonStarkey-ej1oo
      @LeonStarkey-ej1oo Год назад +24

      @@timothymeyer3210 LRAS shift to the right as productive capabilities of the economy increases

    • @FLAMEalan
      @FLAMEalan Год назад +12

      @@LeonStarkey-ej1oo In contrast, according to the context it states that his sister is sold to a Guatemalan drug gang and assuming the shrine is built in the UK, it could actually cause a leftward shift of LRAS as productive possibilities are decreased as a result of illegal human trafficking. However, the construction of Dal Shrine means that there is an increase in economic activity and depending on the scale of the shrine, it could boost economic growth and cause unemployment to decrease in the short run.

    • @shlokmistry4487
      @shlokmistry4487 Год назад +2

      @@ZTheMoki aint you in my econ💀

  • @thatguy-qz3fd
    @thatguy-qz3fd Год назад +138

    Dalls out here making my demand curve perfectly inelastic 💅

  • @hettysinclair9393
    @hettysinclair9393 Год назад +52

    I hope the 25 marker is on fiscal or monetary policy

  • @SamiRahman-k6r
    @SamiRahman-k6r Год назад +2

    Hello, @econplusdal can you do an updated Micro/Macro Effects & Major Topic Areas Paper 3 Revision for 2023 please thank you!

  • @ahmadbaffa4691
    @ahmadbaffa4691 7 месяцев назад +1

    You are a legend sir. Very interesting and informative.

  • @AlevelStudent-c1y
    @AlevelStudent-c1y Год назад +4

    But wouldn’t the influx of hot money into the UK increase the money supply, further depreciating the pound ?

    • @AlevelStudent-c1y
      @AlevelStudent-c1y Год назад

      As a evaluation point

    • @felixmacphail6502
      @felixmacphail6502 Год назад +3

      its not necessarily increasing money supply - hot money flows works by increasing the demand for the pound because investors know higher interest rates will lead to higher profits on owning the pound rather than the dollar for example. This doesn't mean the supply of pounds of the market will actually increased as it is all saved as they look to profit from the interest rates. When they eventually sell you might see higher supply which would decrease the value of the pound so you could perhaps use this

    • @relaxingjey7111
      @relaxingjey7111 Год назад

      @@felixmacphail6502 i agree hot money inflow would usually be on the demand side and not the supply side so it doesnt effect the money supply

  • @Khan-f8p
    @Khan-f8p Год назад +2

    Do u think I can skip financial markets

    • @FLAMEalan
      @FLAMEalan Год назад

      Fr, was revising it last two days and didn’t understand any of it

    • @vvvss-cx1vd
      @vvvss-cx1vd Год назад

      Probably, you just have to pray it’s not one of the contexts and paired up with something worse

    • @philipp2781
      @philipp2781 Год назад +1

      @@FLAMEalan Its pretty easy to understand tbh. All you need to know are the roles of financial sector, and the roles of the central banks. If you have time you could also learn about financial market failure but that's not as prominent. LMK if you have any questions and I can explain some things to you

    • @rosettegolda232
      @rosettegolda232 Год назад

      @@philipp2781 financial market failure.......... like systemic risk? or do you mean on a micro level?

    • @philipp2781
      @philipp2781 Год назад +1

      @@rosettegolda232 No, the theme 4 topic. Caused by externalities, speculation and bubbles, assymteric information, market rigging.

  • @hamzamahamuud4258
    @hamzamahamuud4258 Год назад +3

    DALLL FROM DEEPPP

  • @premraghvani
    @premraghvani Год назад

    Hey there, I noticed you said that with high interest rates the propensity for any old tom dick and harry borrowing is low, meaning less risks to banks, but why did the financial crash happen causing bank failure, when base rates were high? Ik the banks in the UK and US were offering more than 100% equity in mortgages but cost of borrowing wws also high innit?

  • @tomatosoup2193
    @tomatosoup2193 Год назад

    what's the best way to revise using dal's videos? do u guys rewrite his notes + what he says or just listen and memorise. how do u guys do it

    • @zacweston-edwards8849
      @zacweston-edwards8849 Год назад

      make flashcards summarising his videos

    • @mainbraine
      @mainbraine Год назад

      @@zacweston-edwards8849 🙌🙌🙌🙌

    • @MrAnybody04
      @MrAnybody04 Год назад

      ​@@zacweston-edwards8849 using anki

    • @MCart1215
      @MCart1215 Год назад

      @@MrAnybody04 Yes Anki is great. Gonna use it for uni deffo

    • @theambergryphon4266
      @theambergryphon4266 Год назад

      @@MrAnybody04 damn I do the same

  • @reubenwizard
    @reubenwizard Год назад

    the goat

  • @neuratictoast4222
    @neuratictoast4222 Год назад

    Can someone help me understand. Can I use the classical model to show this instead of the keysain ?

    • @FLAMEalan
      @FLAMEalan Год назад +1

      Yeah

    • @P17RAS
      @P17RAS Год назад +4

      doesn't matter what you use eventhough keynesian is probs better

    • @jameshan2308
      @jameshan2308 Год назад

      no you cant as you cant show the shifts in real output from ad increasing

    • @P17RAS
      @P17RAS Год назад +1

      @@jameshan2308 you can but keynesian is more accurate at doing this

  • @user-jx8xf2pk5c
    @user-jx8xf2pk5c 23 дня назад

    I love you

  • @namirelkhazen4253
    @namirelkhazen4253 Год назад +1

    w video

  • @matholympians4503
    @matholympians4503 Год назад

    🐐

  • @Hassan-17.
    @Hassan-17. Год назад

    DALLLLLLL

  • @JJ-ZUMA
    @JJ-ZUMA Год назад +4

    NO KINKY DEMAND CURVE IN PAPER 1

  • @AlevelStudent-c1y
    @AlevelStudent-c1y Год назад +7

    If “ fiscal headroom” exists, does “monetary headroom” exist as well ?

    • @barnabypaterson5104
      @barnabypaterson5104 Год назад +2

      It’s not “monetary headroom” it’s “monetary flexibility” meaning that if there’s a shock in the future they have the ability to lower interest rates in the future e.g we couldn’t do this at the start of covid cause interest rates were 0.75% at the start so could only be dropped to 0.1% limiting its effectiveness

  • @Awai_quotes
    @Awai_quotes Год назад +2

    Thanks for teaching and coming with a clutch in paper 2 you are the real goat

  • @Matt-pw1sg
    @Matt-pw1sg Год назад +2

    HI EVERYBODY

  • @dheerbaldua9490
    @dheerbaldua9490 Год назад +1

    Great video!

  • @huzaifarahman2232
    @huzaifarahman2232 Год назад +1

    Yes Darius

  • @samirahman2106
    @samirahman2106 Год назад

    Hey @econplusdal could you make an edexcel hot topics list for paper 3

  • @nawfaljafri
    @nawfaljafri Год назад

    Contractionary fiscal policy next 💪🏼🔥

  • @NicholasAn
    @NicholasAn Год назад

    THE DON STRIKES AGAIN

  • @benjhshe3993
    @benjhshe3993 Год назад

    Is financial crisis and Great Depression likely to come up ?

    • @P17RAS
      @P17RAS Год назад +7

      You mean financial markets; hopefully not

    • @kitty-rf9zu
      @kitty-rf9zu Год назад

      @@P17RASdo you not know what financial crisis is or something 😭

    • @P17RAS
      @P17RAS Год назад

      @@kitty-rf9zu na we weren't taught it cause the teacher was being bare slow. Now stop acting like a smartass