The Money Market (1 of 2)- Macro Topic 4.5

[@dat-w2s]

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[@jacob10166]

Agreed. He might be the only reason I kill my macro exam. Much better teacher than my professor

[@wassermannberlin9848]

At the year 2013 was discovered The Progressive Growth of Money Supply Principle, which say you how the Money Supply must growth, i.e., the quantity of money that market needs: kzbin.info/www/bejne/n5quo2CfZZdlo7s If we increase the money supply by an amount equal to the sum of interest generated by the financial system during the preceding period, the market interest rate will be the natural interest (Wicksell) Thanks to the Progressive Growth of the Money Supply Principle we know today that it is impossible to return to the Gold Standard. The Principle will force Central Banks to change de monetary policies.

[@Franckzzz]

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Thank you so much! I'm a uni student in Aus and somehow these concepts take my teachers hours to explain along with pages full of notes and readings! You are a lifesaver!

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Me: "my buddy has so much money he got 3 houses and 10 cars" Clifford: "does he though...?"

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my professor took 4 classes to explain this topic and I still couldnt understand anything. you only took 3 minutes. you are saving my semester. thank you sir.

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Economics is made easy with these videos. They are highly educational and well simplified.

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[@LemurInBlack]

same here man. i'm learning macro from knowing micro. it's hard to make everything flow and connect.

[@danishhassan6534]

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[@brycejones6095]

This video is a good way to review the money market as he makes it very simple compared to books.

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⭐⭐⭐⭐⭐ 1:10 graph

[@PuriOm]

Always thankful to you sir you made economics wonderful. @economics

[@hackbumlee725]

Thanks for good lesson. I am taking money and banking class now. It help me a lot

[@alexemrich]

Mr. Clifford, your channel is brilliant. Thanks so much.

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My go to guy😍😂exam on Monday.

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thank you soooo much! this makes it A LOT easier to get

[@Petroguest-i4g]

Insightful video. I just want to know best how people split their pay, how much of it goes into savings, spendings or investments. I'm 27, and earn nothing less $150k per year, but nothing to show for it yet.

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you're an amazing man. Thank you for saving my grade

[@wavim]

thank you man, my test is tomorrow

[@jeffreychanysupload]

U saved my life, thanks for the video

[@wendybetancourt2481]

There is something that I don't understand. People choose to hold a larger quantity of money if the interest rate falls, which causes the opportunity cost of holding money to rise??

[@ameliepascual8851]

Very good and funny videos bring a great sense of entertainment!

[@alparslankorkmaz2964]

Nicely explained.

[@lupe8754]

You’re a hero and I hope you know that

[@niveditapandey6083]

Your distinction and clarity about money was good. If only this was more detailed and longer.

[@mousumichakraborty353]

Please added explanation of Tobin's model of the speculative demand for money.. Also comparing Tobin's speculative demand for money and Keynesian speculative demand for money... Thank you for this video.. It's helpful

[@tradewithme3857]

Sir thank you for making this wonderful vedio..!!

[@sabeelsaleem2312]

LOVE FROM KERELA 😍

[@preetypanwar9159]

Sir can u tell me...... Is there any impact of change in money demand on interest rate directly or indirectly???

[@violethe9881]

I have a question. Credit cards decrease the demand for money, but what about debit cards? Are they also going to decrease the money demanded? Thanks.

[@pufelmulticolorido]

These wold increase the demand fro money

[@nandanramesh9490]

Checking accounts and debit cards are a part of 'M1 Money'; they have high liquidity. Whether they increase or decrease money demanded depends on the policy of that particular card.

[@chiarabolzon235]

You're great. Thank you!!

[@TheGerogero]

I thought changing the interest rate would lead to a change in quantity of money demanded, in turn leading to a change in quantity supplied. However, it's quantity supplied that changes interest rate?

[@lukebarwikowski2649]

The interest rate is an equilibrium point, it's not something that can arbitrarily be changed. Rather it is the money supply that is changed by the federal reserve that is used to adjust the interest rate.

[@TheGerogero]

Thanks!

[@joshm8256]

Video starts at 0:20

[@shanebrennan2121]

wait, so when interest rate is high, people wont borrow from the bank but rather lend to the bank. So less money in circulation because of increased buying of bonds by the public decreases consumption and investment, lowering prices and aggregate demand?

[@tas991000]

Can somebody go into details of how the money supply is not related to the interest rate? Or what sort of thinking process economists went through to get to that supply curve?

[@rachelchingka]

The original source of the money comes from the government, whatever is in the market will not be increased unless the gov prints more money and lend to the bank, the gov controls the supply, and the interest rate

[@srikrishsanthosh6898]

the curve actually slopes with decreasing gradient. this gives rise to liquidity trap.

[@yinyin7614]

Great work.

[@LSPOINTE]

Thanks for the helpful videos !!!!

[@luzmarball5392]

Hi, great videos, thank you. Is there a video on Stock Market supply and demand?

[@makedredd299]

@Jacob Clifford Hi Mr. Clifford is this graph the same as the IS-LM model graph? Internet is confusing me on this matter.

[@blessingmkhwanazi7184]

Thank you Jacob.

[@hrlibrary8386]

very helpful thank you

[@pluxauag7555]

Demand curve down and left, Supply Vertical moves left to maintain Interest Rates. See Money Supply Contraction at low interest rates to combat recession.

[@danielfayz]

I wish you were my Econ teacher at school

[@alexkanga9131]

When income increases, I think you meant the quantity of money increases, not the demand. Great video!!!

[@fly869]

This guy should get payed!

[@theoli824]

oh god it's "paid"

[@brettdobson3122]

Isn't there a shifter of the demand for money about taxes on savings accounts? Or something like that?

[@shanebrennan2121]

im confused, is the interest rate the same for loans given by the bank to the public and as when the public puts money in the bank? do we just change context when looking at the demand curve?

[@vanessaarredondo4612]

OMG your the best! luv 🙌ur vids!

[@JacobAClifford]

+Vanessa Arredondo Thanks Vanessa.

[@cambedak6510]

the thing confuses me is the *interest rate* I do not know when does it means by the interest rate charged by the bank on debtors and the interest rate paid by the bank to its depositors... Please help..

[@rachelchingka]

For example, the fed lends money to the bank at 1% rate, then the bank lends the money to the public at 3%, and then they give ppl interest .5% for saving, then the bank is earning money at = - 1% cost + 3% income - .5% cost = 1.5% profit, and getting supply of money from checking accounts to lend more money to the public, if that makes sense you...

[@faddeen2255]

You are great ❤

[@olig1851]

Very useful, thank you

[@khairallahsaid2030]

what is the effect of simultenous change in money supply and money demand if both change in same direction at equal and different rates

[@tumelochiba2508]

Well explained..

[@mitchellsokol8811]

Wait so if you lower the money supply, I understand that IR go up and then I goes up so AD goes up, but does AS also go up because I went up?

[@user-pk5sz1vq1j]

Jacob the GOAT!

[@shahbazgul3839]

Sir Jacob Clifford kindly explain the concept of Classical Dichotomy.

[@shinkansen1907]

Thank you so much!

[@blownspeakersss]

Shouldn't the demand for money actually be asymptotic to the Y axis because demand for money can never = 0?

[@lilysmith6487]

You are the BEST!!! Thank you so much :-)

[@SAM-tw1ve]

anyone else watching this before their exam?

[@drallisimo34]

cool explanations!!!

[@John-vp6yc]

Can the fed actually increase the money supply (i.e. print money)? I thought that was the role of the treasury. Either way, doesn't the cause and effect start with the fed lowering interest rates? Supply of money increases after.

[@harshithavenkateswaran7034]

no if the fed prints money, that leads to inflation and they don't really want to raise inflation beyond the preferred amount. Also, yeah, everything starts with the fluctuation of interest rates made by the fed. but idk if this will help you now it's been three years since you posted this comment 😭😭

[@Samtaztic99]

Why would you not want to hold money if the interest rate is high? Isn't it good to hold money if the interest rate is high so you get more money?

[@nandanramesh9490]

The 'interest rate' referred to here is the rate that banks give on demand deposits. If a bank is offering you a higher interest rate, one would obviously not want to miss out on it by holding on to it as hard cash.

[@hetaeramancer]

it's from the perspective of borrowers, here, holding money means issuing a debt with interest (borrowing money with interest)

[@Frosty_V0]

@@nandanramesh9490 Isn't the interest rate for this graph referring to the cost of taking loans? Or is the interest rate of demand deposits and taking loans connected?

[@manhalalbanna4330]

Once you said the money supply is unrelated to interest rate then you said the Fed increase or decrease the money supply to effect the interest rate. Can anyone explain it to me?

[@aimer2339]

this is confusing...

[@mont_gom_er_y]

you the GOAT

[@paperroutedetailing3628]

what is your thoughts on crypto in the economy? do you think we will live in a cashless society?

[@sharmilanimbkar341]

So when interest rates are high, there is a lot of potential money to be made by investing, which is why demand for liquid money drops. when interest rates are low, there is no incentive to spend, so people just hang on to their money and don't wanna take risks. I think.

[@harshithavenkateswaran7034]

that's what I understood 😭

[@jacklynseibeh5516]

How is the money market equilibrium established?

[@poorvasharma116]

Thank you😇

[@tuaminator_6666]

Set the video’s playback speed to 7.5 to learn the content affectively. 💯

[@theepicsealshow123]

Effectively* maybe you should watch English lessons instead at normal speed so you actually get them

[@riyakataria680]

@@theepicsealshow123 chill dude it's the internet

[@Saintjohn2711]

Am I right to conclude that Money is Liquidity and Liquidity is money?

[@laurameerten3565]

how do we make a money market graph of a countries impact on the pandemic if the interest rate has been 0 since 2016?

[@buklauuu5064]

I thought if the interest rate if high, the opportunity cost of holding money is low, because your receiving high payments for keeping your money in the bank, and the reason why the quantity of money is low, because interest rates are high so its more expensive to take a loan

[@diviknigam]

Yes that's true, but i'm sure the "money" mentioned in the video was *BORROWED* "money". So the I(r) applied on that loan varies inversely with the quantity of the money the borrower is demanding, if that makes sense.

[@franciscocontreras3450]

The "money" he is referring to is the money on our pockets or on checking accounts, if the interest is high the opportunity cost of having money in your pocket is high because you would rather have it in a savings account so that high interest pays you well

[@hsuanlee6577]

I guess I can skip school from now on.... 😎

[@danielagracio1333]

I have a question! Why does the demand curve does not start in the yy axis ?

[@nandanramesh9490]

Cuz its practically impossible to have "Zero" money in the economy!

[@yoursubconscious]

can you please run for president? you seem to be the only American who understands the flow of money, when speaking about politicians.

[@natekim3968]

Is the interest rate nominal or real?

[@violinpiano444]

Nominal

[@FrumpusOneSix]

Great vid, thanks for posting! (Intro was a bit jarring at first, but that's okay. :P )

[@chantelletshuma5619]

Can u also do videos fr beginners too

[@MghUnit407]

If income increases, why would the demand for it increase?

[@ayanboishakh4434]

thank you sir

[@visionforwardacademy8596]

Sir please explain Derivation of IS LM functions hurry!

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Thank you

[@mr.learner3884]

It is just Awesome

[@morganguest9360]

how does government spending affect interest rates?

[@SarabAhluwalia]

THANKYOU