Level I CFA: Economics: Monetary and Fiscal Policy-Lecture 1

[@IFT-CFA]

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[@shahbaazshaikh1029]

Dear Irfanullah Sir, Thank you so much for these video lectures, may allah bless you!

[@IFT-CFA]

Thanks for liking

[@TamerHamed_PHD]

thank you for your effort, just I have 2 comments on slide No. 1 1. Monetary and Fiscal Both is not a government Policy. only Fiscal is government policy but Monetary is central bank policy. 2. the goal of these policies not low the inflation but moderate the inflation (not low, not high).

[@IFT-CFA]

Both are government policies. Monetary policy is directed toward influencing the quantity of money and credit in an economy. By contrast, fiscal policy refers to the government’s decisions about taxation and spending. The overarching goal of both monetary and fiscal policy is normally the creation of an economic environment where growth is stable and positive and inflation is stable and low. IFT support team

[@hudayasin9111]

In the Fisher Effect when Money Suply increase then its price which is the nominal interest rate will go down not up ,,

[@IFT-CFA]

If the Central Bank increased money supply and the expected inflation rose from 4% to 7%, then to maintain a stable economy, the Central Bank would raise interest rates from 6% to 9%. Hence, nominal interest rate will increase. IFT Support Team

[@thrayamohamedfiras6668]

@@IFT-CFA and what about example 4 in reading Monetary and Fiscal policy?

[@darshangala9804]

m2 is like cash and cash equivalents ? right?

[@ibrahimzoher255]

When the money supply goes up, the interest rates go down to bring equilibrium between money supply and demand, then why in the fisher effect does the interest rate go up?

[@IFT-CFA]

Dear Ibrahim, We cannot entertain multiple CFA questions via KZbin comments. If you need additional help, please purchase the IFT Q&A service. Alternatively, you can post your query on at www.analystforum.com where we will try to answer your question if you add "Studying with IFT" as shown below on your account profile. If you do post there, then message via this link and include the direct link to your post. IFT Support Team

[@ezio206]

Fisher effect works on the long term and there is a caveat: if the output is not growing incomparable rate as money supply then it will lead to inflation otherwise not. so you are comparing a short term scenario with a long term effect.

[@panachaiinthakul4172]

@@ezio206 Thank you sir ,I was wondering about that too, about when money increasing supply, the nominal interest rate depicted in the graph shows a decline , but in fisher effect shows the impact of increase based on the relationship .

[@tim9453]

thanks for this

[@IFT-CFA]

Dear Tim. Thank you for your great comments. We are really pleased that you are able to benefit from IFT KZbin videos. Be sure to Like the videos; share IFT videos with your social media circles. Thank you! - IFT Support Team

[@forexcitycapital4293]

another mistake at 7:52 you should have written a 1000 but you wrote a 100 .

[@IFT-CFA]

Yes, this should be 1,000. IFT Support Team