Lecture 6: IS-LM, continued

Поделиться
HTML-код
  • Опубликовано: 14 янв 2025

Комментарии • 16

  • @passerbye
    @passerbye Месяц назад +4

    43:06 This is what is actually happening in Russia now: the government spends loads of money on war payments overheating the economy and the central bank keeps hiking interest rates which has reached 21 percent. At the same time the gov reacts to the high interest rates and expands fiscal policy again by subsidizing the way too expensive mortgages, heating economy again

  • @derson512
    @derson512 2 дня назад

    44:55 is the case in Brazil, but the environment is something unique. We had a 2024 GDP that is beyond expectations during that year, but gov expenditure is a concern. Then, central bank hikes interest rate in order to prevent inflation from increasing more than its supposed to. Our central bank is autonomous just since 2021.

  • @Akerfeldt77
    @Akerfeldt77 3 месяца назад +5

    Cheers to you, faithful viewers of this course. Cheers to the ones who bypassed the "learn Macroeconomics in 15 minutes" horseshite that dominates youtube. On a side note, the "1080p" setting looks like the mpeg WCW wrasslin' videos I was downloading over dialup in 1995.

  • @jonesdavis8474
    @jonesdavis8474 Месяц назад

    Thank you sir, thank you mit❤

  • @mohitgehlot6582
    @mohitgehlot6582 Месяц назад

    Thank you MIT

  • @SphereofTime
    @SphereofTime 6 месяцев назад +2

    8:50 LM relation

  • @田中太郎-t6z8d
    @田中太郎-t6z8d 6 месяцев назад +2

    I have two questions.
    1. why war typically goes all in despite the fact that central banks are independent? they are no longer aiming price stability?
    2. what is the meaning of negative interest rate? Japan did that despite of the liquidity trap.

    • @abdullahkeskin6695
      @abdullahkeskin6695 5 месяцев назад +1

      İn War times, monetary and fiscal policies are both expansionary.
      Nominal interest rate doesn't go below zero but Real interest rate does. Because, Real interest rate is nominal interest rate minus inflation rate

    • @田中太郎-t6z8d
      @田中太郎-t6z8d 5 месяцев назад +1

      @@abdullahkeskin6695 thank you for the reply, but I'm asking why monetary and fiscal policies are both expansionary in war times.

    • @abdullahkeskin6695
      @abdullahkeskin6695 5 месяцев назад

      @@田中太郎-t6z8d because, government needs more money to spend on any kinds of weapon and other things to win the War. You can check the applied policies of those countries involved in the wars during the ww ı and ww ıı. Primary Target of county is to win the War rather than price stability.

    • @abdullahkeskin6695
      @abdullahkeskin6695 5 месяцев назад +2

      @@田中太郎-t6z8d primary goal of the country is to win the War, not price stability. During the War government needs to spend much more money on weapons and other requirements.

    • @abdullahkeskin6695
      @abdullahkeskin6695 5 месяцев назад

      @@田中太郎-t6z8d let me explain the mechanizm how both are expansionary: government has to increase tax and/or debt to cover the War spendings. Forget the tax and think about debt. Government sells treasury bills/bonds more and more, as a result interest rate increases; central bank has to buy treasury bills/bonds to reduce interest rate which means expansionary monetary policy.