Monetary Policy explained

[@yeetdiscreet1278]

Still a complicated concept but this made things a lot more digestible. My university textbook isn't doing the greatest job explaining it honestly. It just....assumes you know all of what it's talking about and only vaguely defines many terms. Could also be my ADD keeping me from fully comprehending what I am reading as well. That has always plagued me.

[@Keylez1731]

Interest rate if the price of money 💰 I like that one. "Perfect" 👍

[@anisurrahman3641]

Thanks! It was really helpful. Beautifully explained! I have the final exam tomorrow, the KZbin videos are carrying me. 😭

[@tellurian3946]

thanks mate, ive been struggling to understand this topic for a while now, your video helped me alot to get to grips with it 👍

[@saidali6960]

I have 1 degree in accountancy and management, i did not understand before, the way i understand now, thanks proffesoory.

[@siminstitute]

Thanks Said! Glad that the video helped you.

[@Whif66]

😅😅😅wow amazing now I am 1st year degree

[@geraldinekafwanka8796]

Thanks very helpful. i have my exam in a week and it ddnt make sense at all, until now.

[@fatimanasir5347]

very nicely explained .

[@AnselemOkafor-z5p]

Thanks for the explanation.

[@siminstitute]

You are welcome! Check out the rest of our videos too.

[@N.aesth1]

thanks this halped, but could you do make a longer video on this including -changing discount rate, -restrictions on credit and -SDFR,SLFR which comes under interest rate etc

[@JoePopovich-r1x]

Lucius Mill

[@BradleyNzuobontane]

good video! cheers fella

[@ebenezeryeboah7090]

Great Video

[@lakshmankonka767]

Explained excellent

[@karfar8029]

Monetary policy is determining or controlling the cost to obtain credit. Using the tools provided to it, the Fed controls the cost to obtain credit. They do not control the money supply but do influence it. Most of the money supply is bank credit and controlling the cost to obtain that credit influences the supply of it. Monetary policy does not control, in any way, the net supply of government liabilities. Banks have two accounts with the Fed, a securities account and a reserve account. Moving a sum of government liabilities from a bank's securities account to the bank's reserve account is not printing money or increasing the overall supply. It is simply changing the form of the government's liability. Monetary policy is not the creation or destruction of money, that's fiscal policy. Securities can only be purchased with reserves. Converting those securities back to reserves is not money creation. The creation of reserves only occurs through fiscal policy. Lower rates incentivizes borrowing. Higher interest rates increase costs (inflation) and disincentivize borrowing. The cost of credit is reflected in the cost of all goods and services. So, increasing the cost to obtain credit will, of course, results in inflation. Inflation is not a monetary phenomenon. It is almost without exclusion a result in a decrease in supply.

[@h.a.s.42]

LOOOOOL

[@lanscapital5680]

Good explanation

[@Adish_Doley]

❤

[@johngabrielledesma2209]

that was an informative video.... may i know your reference ?

[@siminstitute]

Thank you! The materials in the videos are consistent with all standard Macroeconomics textbooks.

[@MiguelWilson-e5g]

Eugene Valleys

[@DunlopMamie-n1n]

Hagenes Plains

[@ILikeIbanezGuitars]

pretty good video

[@jephaneyestorioso1605]

What is the most important element of monetary policy?

[@siminstitute]

Controlling the money supply

[@ElsaHelenHelgason]

When the moneys kept into the saved then the moneys values drops and turning to the inflation that the moneys values can't matching up the world's business and salary of environmental impact on the urge of the inflation caused the job's payday lower than the inflation fastest outcomes of the struggling crash the businesses of marketplace no ways out; then the governments kept asking for more to covered of theirs the debt and cuts funds to the Healthcare and financial institutions of all.

[@sierrabrowneda3822]

Quitzon Brooks

[@desirebooke6518]

cut the middle men and just save cash money lol

[@viorelgheorghe9772]

❤