Quantity theory of money | AP Macroeconomics | Khan Academy

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Does increasing the money supply impact the price level? Learn about the quantity theory of money in this video. AP(R) Macroeconomics on Khan Academy: Macroeconomics is all about how an entire nationÕs performance is determined and improved over time. Learn how factors like unemployment, inflation, interest rates, economic growth and recession are caused and how they affect individuals and society as a whole. We hit the traditional topics from an AP Macroeconomics course, including basic economic concepts, economic indicators, and the business cycle, national income and price determination, the financial sector, the long-run consequences of stabilization policies, and international trade and finance. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything kzbin.info_....
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[@ynn1759]

Khan literally knows everything whoa thanks for sharing your knowledge with us!

[@PunmasterSTP]

It's like there's nothing he khan't know...

[@justinabegg730]

thanks, you made it clear to understand the relationship between money supply and price index (inflation)!

[@johnzhou4877]

Thanks for your explanation! These extreme examples really help.

[@deborahsakazhila4068]

Can this be used to explain the classical model of monetary policy?

[@crazieeez]

It is a qualitative look. Reality has time.

[@khirabdhitanaya8931]

Can you please explain Fischer's approach?

[@oddwork2183]

Great

[@ENAIRAMA1]

I thought I could applied this to my own economy LOL! And if it does, how applicable is it and for what circumstances.

[@PunmasterSTP]

Out of curiosity, what do you consider to be your own economy?

[@s73squee]

How could you translate this into crypto stats such as cdd

[@edlitwak2857]

in 08 the banks did NOT put the money in the economy, they shored up there balance sheet and did not loan it out

[@cloroxbleach5105]

Hello

[@emelito888]

At first I thought it said quantum theory of money lmao

[@theelderelk5582]

Yeah :( money that changes if you observe it

[@PunmasterSTP]

That would be an awesome theory though...

[@pajeetsingh]

So inflation is a monetary "phenomenon" and has nothing to with rich people hoarding assets and then asking for higher price? Like houses?

[@courseconceptsacademy4546]

fudge factor

[@frankiepatron9834]

Qefeseral reserve can tac it

[@bargdaffy1535]

Just an example New Zealand has a GDP of $200 Billion annually.

[@PunmasterSTP]

Quantity theory of money? More like "Khan Academy keeps helping us to study!"

[@MooShaka89]

This is quite close to how Austrian economists think when it comes to monetary policy

[@transon6655]

Not in any way

[@tuckervskele8024]

Scary MIT and IIT bombayx gateways till Loyal And Royal Gates silver and gold

[@nftmojo79]

How do I calculate price level?

[@anuvlad9836]

Nominal/real GDP

[@chaimaaharmouche8151]

i don't get how p.y equal to nominal gdp

[@zanecoates7082]

We have the price we paid (p) times the amount of total goods/services in the economy (y). So this gives us nominal gdp which is the current "inflated" perception of what our economy is worth. This is why the number is usually above one for P because it is factoring in inflation.

[@thembanitheone]

"Velocity of money" ?👀

[@hudsonoliveiraWinchester69]

The velocity that the money be transfered hand by hand ;)

[@jamesmorton7881]

Velocity is at record low. GDP is inflated by financial returns (unproductive)

[@deltasource56]

8.5 percent as of april 2022 says your wrong

[@DarkMelodies-hv9wf]

Bruh this explanation is not good. its the first time in saying this

[@gauravlakhotia2279]

Why?

[@Tetragrammaton22]

Yeah you can't just say it's not good without explaining why it's not good.

[@hossamhafez9826]

@@Tetragrammaton22 exactly

[@collinblatchford]

To be fair he's explaining a circular theory so it's shouldn't make sense. A*B=C*D makes as much sense as MV=PY.

[@PunmasterSTP]

What specific issue(s) did you have with it?