Fiscal Policy - Borrowing and Government Bonds

[@thejohnfamily318]

This guy is brillant, he is much better than my teacher.

[@hughmcclements7589]

5:42 But Dal, the real question is; Which is heavier, a kilogram of carrots or a kilogram of steel?

[@artupayrus]

YO DAL, ur bond is about to mature it's almost 2020. Is there gonna be a party?

[@aris6510]

its matured

[@TMIKEZY]

ye the global economy collapsed what a year 😂

[@Manny2cute]

Why does the yield affect how expensive or cheap the cost of borrowing is to the government? The government are only paying the coupon and the nominal value back, both of which are fixed, so I would've thought their cost of borrowing is fixed regardless? Could you please explain this? Thank you!

[@samuelgreenrod1812]

Okay so the government can issue a bond to pay for infrastructure but must pay interest on that bond to the bondholder. Bondholders can trade the bonds for the market price and the value of the bond determines the interest that the government must offer to maintain buyers. Therefore, if for example many bonds are issued to pay for state services or if the risk of defaulting on the loan increases, the value of the bond will decrease and so more interest will be required to maintain buyers. And this will increase the risk of defaulting. Did I get this right or can anyone correct me if I got it wrong? Cheers

[@sephwatson340]

Brilliant thank you. Really useful for my essay on QE.

[@mwan6865]

Hello sir, can I have a read of your essay on QE please? 🙏🏻

[@master4755]

Surely the money made before losses is the coupon multiplied by the number of years so 5x5, then plus the nominal value gained at the 5th year (100), meaning the bond has made you £125. Since you bought it at 144, then the percentage difference between these two numbers are the yield?. 125-114/114 x100 = 9.6%

[@Riceandgravy]

The A2 macro is good but i don't see how this will come up

[@lancsFrogger]

but what about devaluation of the currency???? the Economist Online says the dollar depreciated in value by 33% between 2002 & 2007 (& has probably dropped even more since 2008, what with QE & all) surely this affects the bond yield equation thing?

[@udm001]

Does this National debt include the part of external debt owed by Government to foreigners?

[@chinarbajaj8499]

@econplusdal sir, the video was very helpful. i just had one question to ask.. government provides compounded interest on the bond or simple interest?

[@EconplusDal]

Not compound interest, fixed interest every year

[@marcushutchinson3151]

Is this on the Edexcel syllabus? I can't seem to find anything on government bonds in my text book.

[@Bieza01]

pretty sure It's not though my teacher seems to love talking about this

[@agphot1]

Is it true that each Govt Bond is 'underpinned' (given inherent value / strength) by also incorporating a listing of new National Insurance numbers to demonstrate how the economy (Govt) will have the wherewithal (tax revenues) to make the ultimate repayment ?

[@raulmaximo5810]

no, that would be unnecesary

[@ahmedmahay]

Thank you!

[@benjennings748]

In the A2 OCR exam, how would this topic come up?

[@NewJayqwe2]

ben jennings Might just apply to Edexcel, he tries to help people of all exam boards

[@MidhannAhuja]

Oh you god!🙌

[@AlokJadva]

So in this example of 114, you’d be losing money right so it wouldn’t be a very good investment

[@AlokJadva]

Sorry there’s the 5 years interest I didn’t take into account

[@AlokJadva]

Although I raise a good point because later on in the video you calculate yield to maturity which takes away the capital loss of 14 as above

[@MrVijay0305]

wow so the yield can only decrease... for if it increases means our respective govts are doomed to bankrupt... man am I the only one that assumes that money is the greatest con in human history..!!!!

[@yuxiao123zhu8]

very good vedio i hope u can talk more about the Wage setting,price setting and taylor rule these kind of things tks~

[@tarrysmile]

IOU

[@Danzii]

I owe you

[@Danzii]

smart

[@ef7480]

lol 'backed by government' A government that's already £2.5trillion in the hole...