Macroeconomics, Lecture 04

[@kmpetrov]

Absolutely correct -- if government deficits rise, usually INVESTMENTS fall. Therefore, government deficits KILL economic growth. Deficits are good for the short-term, but terrible for the long term. However, politicians don't care about the long term, so they prefer deficits.

[@kmpetrov]

"The Mystery of Banking" by Murray Rothbard. I use it here in this course for half of the lectures, starting with the topic of money.

[@flematte1]

Is great that you give credits over and over to Bulgaria your country, you are a great professor.

[@AleksandarCicmil]

Thanks for uploading the lectures, I really enjoy following the course :)

[@j_esc9]

Macroeconomics - Bernanke/Abel (5Ed) Ch.2 0:18 - 9:48 Intro To Savings, Wealth, Assets, Net Wealth, Liability, Income 9:49 - 18:15 Stock Variable & Flow Variable 18:16 - 29:45 (Definition of Savings (Investments, Government Deficit/Surplus, Taxes/Revenues) 29:51 - 37:03 National Savings - Government Savings and Private Savings (Current Account, Current Account Surplus/Deficit) 37:10 - 39:39 Savings Rate (Income) 40:01 - 41:42 Uses Of Savings Identity 41:48 - 46:10 National Wealth (Note on Keynesians) 46:40 - 57:57 Real and Nominal GDP (CPI, Consumer Basket, Inflation Rate)

[@kmpetrov]

Thank you for outlining.

[@kmpetrov]

@flematte1 Well, the course is in Bulgaria and most of the students are Bulgarian, so it is quite natural to give credit to Bulgaria. In my courses in Saudi Arabia and Taiwan I do quite the same for their countries too

[@ashv789]

Thanks for the help. It make sense when the economics growth is slow hence more saving, less investment and more import leading to a fall in CA

[@kmpetrov]

In this particular formula G means government expenditures.

[@bookcentralpakistan2497]

Sir, first you said it's government saving then you said it's expenditure. Can you please elaborate the concept.

[@TheChibisu]

Great Lectures, very easy to follow!!

[@LaileB22]

You really are the best lecturer, i hope you read this.

[@kmpetrov]

There is no money. As an individual, you produce 10,000 apples and eat 7,000, so your savings is 3,000 apples. This is macroeconomics -- it is about the whole economy, not about individuals. For that, you need to study microeconomics.

[@ashv789]

Dr. Petrov, I see how the CA will fall and also how investment may be less, but why will private saving rise? Should it fall aswell as from equation 2.11, there will be a greater govt deficit

[@The2kay]

Just awesome lectures, extra info for my uni lessons, as my tutor doesn't mention half of what you do.. thanks from London !

[@ZeinaSereia10]

you are an EXCELLENT professor

[@amansunder123]

Dr. Petrov, Thanks a lot for excellent explanation. I got confused with C+I+G+X. G was Govt spending in the original definition but then you said that G = Gov Saving = Gov Income - Gov Spending. Can you help me to understand? Regards Aman Sunder New Delhi, India.

[@ashv789]

Dr. Petrov, I am having trouble understanding the uses of saving. Based on Bernake book, it states that "Equation (2.11) shows that, if S(govt) falls so that the government budget deficit increases, at least one of the following three things, or a combination of them, must happen: (1) private saving must rise, (2) investment must fall, and/ or (3) the current account balance must fall" I don't get what its trying to say.

[@alibahadur44]

sir you are doing a great job.plz keep it up!

[@kenny641]

Hi Prof Petrov, thank you very much for the video, it is very educational. However, there is something that I am confused about. At: 34:30, you talk about CA deficit = import of capital. However, I thought by definition, CA deficit means Import of goods/services > Export of goods/services, which implies net export of capital. That is contradictory to your explanation in the video. Can you please explain? Thanks. Kenny

[@sreeniala4603]

Kenny ,If I have understoodit correctly .This is what It means ...CA deficit means imports greater than savings . Imports of a country - procurement of goods and services by a country for meeting its needs from another country . The other country has produced these goods and services as a result of investment. Remember ? Investment comes from savings ...therefore It's referred to as" importing savings". To summarise Dr. Petrov 's lecture ...you can import savings either for consumption( products or services) or for investment to drive your own economy.

[@MariaTorres-xd8wx]

hello I am only want to say thank you I am from Costa Rica I really enjoyed yours vídeos.

[@kmpetrov]

Thank You. Happy to have people from all over the world watching my lectures.

[@drmonty3]

I just found an excellent article that you published on your website a few months ago on the subject, it is on the same line I was thinking. By Neil Howe and Richard Jackson Global Aging And The Crisis Of The 2020's Very interesting & well written.

[@AlmyezanChannel]

thank you Prof, thank you very much.

[@SujanAdhikari243]

mr petrovv, could you please recommend the best book in macroeconomics for undergraduate level?

[@Liaomiao]

thanks again, please upload more courses

[@kamalsingh7005]

tanks sir for providing this kind of lecture

[@kmpetrov]

You are welcome.

[@skyfaze]

hi proff just a question why do you teach in so many places in such different parts of the world? like bulgaria taiwan saudi

[@Kamarakhalifa942]

Logical

[@kmpetrov]

You are exhibiting very serious symptoms of suffering from a terrible disease called KEYNESIANISM., trying hard to figure out economics from an IDENTITY. Just move on to learning better things than trying to figure out formulas!!!

[@Kamarakhalifa942]

Logical