Chapter 5, Part 1: The Behavior of Interest Rates

[@aaronjackson9618]

AUTHORS NOTE: There is an error in the presentation of expected inflation on bond demand at about 16:42 - 17:40. A decrease in expected inflation increases the expected real return of holding bonds. This raises bond demand (shifts to the right). I erroneously explain in the video this as decreasing bond demand.

[@rosalinejatta3235]

Thank you so much you have been very helpful

[@bentleyuniversityec391mone6]

Rosaline, You're very welcome. Glad to have been able to help you out.

[@arafangbah3509]

Your video was really helpful

[@bentleyuniversityec391mone6]

Glad to be of service!

[@millertoyal]

Most of this is common sense, convoluted with economic theory. You do this every day at the grocery store. As the price of apples increases you buy less, if it decreases you buy more, no brainier. Although I must insist, he has an unique ability at simplifying the concepts. However, the issue with the federal deficit is a completely different fiasco all within itself! "Houston, I think we have a prblem!"

[@bentleyuniversityec391mone6]

Millertoyal, Thank you for the comment. Yes, interest rate determination really is all about supply and demand, and so we tried to relate it to standard supply/demand stuff as much as possible. Aaron is good at simplifying and explaining things. He's won a number of teaching awards (note: I'm not Aaron).

[@thon993]

THANK YOU SO MUCH! Bruh my instructor cant teach for s**t!! God bless you.

[@bentleyuniversityec391mone6]

You are than welcome! Glad we could help.

[@OttoFazzl]

Why will decrease in expected inflation decrease expected real return on bonds? There was no explanation and it's not clear... It also seems counterintuitive.