Inflation Overview | Inflation | Finance & Capital Markets | Khan Academy

[@sdveffwvee9825]

Sal is sooooo much better than most teachers out there

[@Sil3ntNinja01]

Sal's son must grow up to be a goddamn genius

[@shravanraj.k]

The videos in the playlist are mixed up, it would be helpful if there is a way to find the sequence in which the videos proceed.

[@VeryScaryShadows]

Thanks Sal! Love your Videos,I love your vids on Currency,Taxes,Interest....General Numbers....Hope to see more! Thanks

[@ivan.urrutia007]

Awesome! Thanks!

[@vanskiid]

Thanks Khan !

[@alexanderhle]

This is a great supplement to my university education! Thanks!

[@bighands69]

Read Friedrich Hayek and it will change your view point.

[@2leet2cheet]

@Menegoth The argument shouldn't be returning to a gold standard or not. The argument should be who should have the power to print money.....

[@Menegoth]

@mrhnm Well do you propose we just go back to direct trading? that's just silly

[@2leet2cheet]

@Menegoth ...I believe it should be some type of automatic function..Remove human error from the equation. No more beliefs, or feelings involved. Something automatic would remove all the guessing as to what the FED will do next.(more confidence) You obviously believe our government will save us, please correct me if Im wrong about that.

[@blarson1]

@mrhnm You are oversimplifying the issue. The money supply is only one factor influencing inflation. You cannot discount the expectations of societies in price determination.

[@mrhnm]

@Menegoth True but the more of something you have the less individual parcels are worth. Money backed by force is not money.

[@Menegoth]

@2leet2cheet Well, who should have that power then?

[@sydshab]

when he discounts the 660k from year 5 to year 1. Shouldn't he discount 660/(1.1^5) = 409.808. Might be wrong!

[@19HM98]

no because the 10% increase occurred over the 5 years, not PER year.

[@mcrib10]

Because the price in year 5 is the price of year 1 plus the 10 percent. Because of this he uses the 1 in order to carry the total price of the house over, and the .1 to add the 10%. Also, if you think about it, the house of year 1 times 10% would be 10 percent of the house's value, which obviously isn't right.

[@Menegoth]

@mrhnm " True but the more of something you have the less individual parcels are worth." Good job, you just defined inflation. Not sure what that has to do with anything though Money isn't backed by force, it's backed by ideology. That sheet of paper (or whatever it's made of) is worth 5 dollar because people project that value onto it. Think about how much 100 dollars is worth marooned on an island.

[@mrhnm]

@at1212b Please explain. I have not heard of this "fractional reserve" what is it? Thanks

[@LimonyMoney]

genial!, excuse me!, i´m studing design, you could tell me how do you do this video?? is a touch device?, which programs you use? thank you very much,, sorry for my english..

[@michel3329]

khanacademy.desk.com/customer/portal/articles/329318-what-software-program-equipment-is-used-to-make-khan-academy-videos-

[@mrhnm]

@Menegoth Since the FED was created the USD has lost 97% of it's value.

[@2leet2cheet]

@mrhnm So i guess Nixon didnt the gold window?

[@mrhnm]

@Menegoth The scarcity of gold is what gives it value. Fiat money is based on force and faith.

[@2237lemon]

@annoloki , p.s. you wouldn't take Japan out of the currency basket simply because there a little volatile right now wouuld you? Only a Keynesian would take the two biggest aggregates out of an index and call it the definition of inflation. Although, the price per barrel jumped at the time of the uprisings the bigger reason would be the monetary inflation the Fed dumped on the economy especially influencing imports ,which oil is ,from the american point of view

[@JAdrew]

Why did 10 turn into 1.1? And can i just use ten?

[@Menegoth]

@mrhnm We already have a Gold Standard. That's what dollar bills are: a representation of gold and labor.

[@2leet2cheet]

@Menegoth We havn't had a gold standard since 1971.....

[@argirisveliou6617]

I feel thats not correct if the increasement comes from technology it’s not inflation it’s growth inflation is when the same stuff has taken an increase at price …

[@mrhnm]

@2leet2cheet We haven't had a gold standard since 1913 when the FED was created. They stopped putting silver in coins in the 60's.

[@mrhnm]

@Menegoth I propose a Gold Standard.

[@mrhnm]

@blarson1 Well the money supply is a major part of it. But touche.

[@nitaytalyosef5468]

No sound? anyone else?

[@annoloki]

@2237lemon Oil isn't really a good indicator to use, for example, it shot up loads earlier in the year due going in to Libya. That has a massive effect on the economy, but you wouldn't be able to measure the effect if it was included in the CPI, and by dwarfing other changes, maybe even hide them. Hiding them to tell us something we already know (oil goes up when oil producing countries are invaded) isn't really helpful to anyone.

[@bighands69]

Oil is still a commodity its price is subject to inflation like everything else. In 1955 oil was at $3 and today it is about $60 give or take market fluctuations. Do not confuse short term price gains or loses based on supply or the confidence in the international oil market. Inflation is really only useful in the long term unless hyper or stagflation occurs over the whole economy.

[@deandodson3546]

Silicon valley? Huh. I know some people who could use this information, but I don't think they care. Deep on both sides, but varies in depth. Let's go br@ndOn.

[@2237lemon]

@annoloki Since food and energy would only be a portion of the weighted average their volatilty would smoothed out already but completely excluding them completely skews the real numbers. I'd personally rather see a slightly volatile REAL number than a non-volatile but completely wrong number to see my real loss of purchasing power which is exactly what this number is measuring and hence the reason the gov't wants to keep the number low so COLA increases are minimal, although it is reducing...

[@Menegoth]

@mrhnm Correlation != causation

[@mrhnm]

@2leet2cheet The money the FED prints is backed by force not gold. Nixon may have officially ended it, but the money was gone before.

[@2237lemon]

...entitlements and keeping expenditures in check, however wrong that may be to the top third pensioners of the SS Ponzi scheme...lol...which means I probably won't quite make it to get a payment before the scheme completely collapses to even care i guess.

[@mrhnm]

@Menegoth I gave my definition of inflation to demonstrate why the FED printing money like it does is the problem. It is backed by force if I choose not to use it as legal tender and instead created my own money backed by gold I can go to jail. In other words our money is worthless. On an island it is worth less than it is in a city. Currency backed by gold is stable because gold isn't just paper.

[@annoloki]

@2237lemon You're missing my point. You can see the price of oil changing all by itself, just by looking at the price of oil. The bigger single consumer of oil is the US military, so even they feel it, so it's not like anyone's unaware of the situation just because they don't call it what you want them to call it. Invade a country, oil price goes up, cost of all imports 'n everything that needs oil goes up, you still see a result. At least with oil out of the basket you can see that effect.

[@sleepyhead7391]

first!