Y1 36) Monetary Policy - Problems and Evaluation

Monetary Policy - Evaluation. Video covering all the key evaluation points to Expansionary Monetary Policy via lower interest rates
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[@lifewithdylan]

I want my kids to marry someone like you good sir

[@antisocialbarbie1587]

Lmaooo🤣🤣🤣🤣

[@DForre6040]

bruh😭😭

[@akashs2242]

econ rizz is crazy icl

[@OlDirtyCustard]

Liquidity Trap looking more and more relevant now. @EconplusDal

[@user-eb4ox4sd6v]

Great vid :) , have you made any vids specifically on contractionary monetary policy?

[@hisschoolwork3987]

What is the difference between 'cons' and 'evaluation' , it feels a bit like it's the exact same thing?

[@lokkutkajj5251]

It’s not at all. The evaluation will be very important if a 25 marker around monetary policy comes up.

[@neelmajm5868]

Hey man great vid. Could you please do contractionary monetary policy I love you so much!!

[@milesharris5315]

Many Congratulations on bringing up the 100k Dal! You've helped out many of my old students. Much deserved!

[@bothoseretse9605]

i would have majored in economics if you were my professor/lecturer....Thank you so much for the videos again truly appreciated

[@zhetinggu4300]

This is the best economy class I'v ever taken! thank U so much!! :)

[@etherealliz1]

wonderful video, perfectly summarised for a lovely AO3 expansionary monetary policy evaluation flashcard :)

[@shaanmusa6473]

Video on contractionary monetary policy? thanks mate!

[@lucasnardin4981]

Did you find that video ever?

[@shaanmusa6473]

@@lucasnardin4981 Can't really remember mate. Just think cons of higher IR would be a higher exchange rate. This is because a higher IR would attract more "hot money" from other countries which increases the demand for a currency thus pushing up the price (inflation). Pros would be higher return on savings and increased business confidence mayb (increasing IR shows signs of recovery on the economic cycle).

[@gozza1766]

@@shaanmusa6473 For your con, remember that hot money increasing the value of a currency on the foreign exchange market doesnt directly effect general price levels in that country. A more reasonable effect would be that a stronger currency will reduce the demand for exports (as they are more expensive now) and increase the ability of domestic consumers to import goods from abroad. As AD consists of X-M this change will result in lower AD in the country, thus actually deflationary pressure

[@shaanmusa6473]

@@gozza1766 good point mate thanks. I guess the most significant factor is the competitiveness of your exports, and the effect it has on X - M.

[@tbradmart]

@@gozza1766 good tip thank you

[@andrewt580]

These videos are brilliant for revision, thanks!

[@maryamkhan1724]

if there is a liquidity trap and people already have cash and spend wouldnt that increase consumption thus AD?

[@sonalichaggar3567]

Is there a video on contactionary, can't find it? Thanks.

[@manav_chak7410]

yeah i couldn’t find it either

[@hexagonps]

Love you bro✌️✌️ keep it up

[@MrMiagi_GP]

If there is high unemployment in a country, the banks may also not be willing to lend out money due to risk of defaulters, which renders the reduction of interest rates ineffective. 👍

[@miamartina7188]

could the liquidity trap be used as evaluation for higher consumption?

[@raf2866]

Hey, do you think I can get at least a c in economics by june, I feel like I dont know anything at all and i dont know what to do, i get terrible results in my exams

[@raf2866]

my spec is eduqas

[@Matthew-wp9mj]

If ur not an idiot and work like a wage slave fora month on economics before ur exam u can get an A ahah jus have to have a knack for economics but even if u don’t a C is perfectly doable remember grade boundaries are low asf

[@mamanoodler]

Yes, a C should be very doable if you put in the hours revising and try to understand each topic and how lots of things are connected etc.

[@Matthew-wp9mj]

@econplusdal stop deleting my comment not everyone’s traditional

[@tahrimachowdhury4283]

yes i'm in the same situation, keep watching these videos and do one past paper per day, i think we can get a C

[@mamanoodler]

great vid as always!

[@sharepremium8614]

@Sarah Musheer Hussain Shaikh - 81629/TCHR/BKDC no

[@EternalShadow1667]

Thank you, Mama Noodle.

[@smithy0l180]

wowzers!

[@zahiddatoo]

could you argue that low interest rates increase the possibility of hot money outflows causing AD to fall?

[@hawksls3610]

Hot money outflows = increased supply of pounds being sold and decreased demand for pound = depreciated exchange rate = more exports and less imports = higher AD

[@mattimakadsi]

@@hawksls3610 the point of worsening current account deficit will be contradicted though.

[@hawksls3610]

@@mattimakadsi What he said about AD wasn’t about the current account but yes, the current account would improve

[@denfordkudakwashe712]

🔥🔥🔥🔥🔥🔥🔥

[@crochetbyhollyk3455]

0.1

[@master4755]

Could you also do size of multiplier? [To evaluate]

[@nadia2679]

I think that would fall into size of the rate cut

[@master4755]

@@nadia2679 yeah

[@chriskiddey4508]

I don't understand the difference between cons and evaluation here. Could you use both collums as evaluation points?

[@tmleejs]

The “Cons” are the negatives of Exp Monetary policy, but the “evaluation” is the counterbalance to that negative effect.

[@clova1311]

0:59 if there are lower interest rates, wouldn't the exchange rate of the Pound depreciate (hot money is moved elsewhere so supply increases as well as demand falling). then as the pound is weaker imports become more expensive and exports cheaper which would actually improve the current account deficit. Or is this a more long term effect after the initial widening of the deficit?

[@tsiki3533]

both occur but exchange rates are based more off speculation than other aspects - but it still does occur - idk about long term though

[@mainbraine]

Since the UK is an import heavy country, I think the result of the demand pull inflation increasing disposable income will further strength the value of imports that are coming into the country. Since hot money is a pretty niche concept I don't think the effect it has on the exchange rate will be as impactful as the demand pull inflation impact on the economy.

[@zk_011]

icon

[@adammoogan388]

Is this following the Edexel syllabus

[@zk_011]

shush

[@AlexSh9]

The other side of Vikstar