Y1 37) Contractionary Monetary Policy - Higher Interest Rates

Contractionary Monetary Policy - Higher Interest Rates. Video covering the consequences of higher interest rates as contractionary monetary policy for the economy, individuals and firms
For Products, Services and Bookings visit econplusdal.com
Instagram: / econplusdal
Twitter: / econplusdal
Facebook: EconplusDal-...
End Music: Relax by Peyruis / peyruis Creative Commons - Attribution 3.0 Unported - CC BY 3.0 creativecommons.org/licenses/b... Music promoted by Audio Library • Relax - Peyruis (No Co...

[@thatguy-qz3fd]

Dalls out here making my demand curve perfectly inelastic 💅

[@ENGLANDSIDE]

🤨

[@FLAMEalan]

Advanced humour

[@callumhoulston1786]

Dal gives everyone a classical long run aggregate supply curve

[@EmmanuelTafadzwa-by2sb]

🤣🤣😂💯

[@GhostfaceGil]

I sold my sister to a Guatemalan drug gang to fund the construction of a Dal shrine in my garden

[@ZTheMoki]

Phew, i thought i was the only one

[@timothymeyer3210]

Assess the microeconomic and macroeconomic impacts of an increase in free labour that selling your siblings to slavery may bring

[@LeonStarkey-ej1oo]

@@timothymeyer3210 LRAS shift to the right as productive capabilities of the economy increases

[@FLAMEalan]

@@LeonStarkey-ej1oo In contrast, according to the context it states that his sister is sold to a Guatemalan drug gang and assuming the shrine is built in the UK, it could actually cause a leftward shift of LRAS as productive possibilities are decreased as a result of illegal human trafficking. However, the construction of Dal Shrine means that there is an increase in economic activity and depending on the scale of the shrine, it could boost economic growth and cause unemployment to decrease in the short run.

[@shlokmistry4487]

@@ZTheMoki aint you in my econ💀

[@hettysinclair9393]

I hope the 25 marker is on fiscal or monetary policy

[@FLAMEalan]

Same

[@WildXstElementZ]

You were in luck

[@zohaibgulawan9070]

Thanks for teaching and coming with a clutch in paper 2 you are the real goat

[@ahmadbaffa4691]

You are a legend sir. Very interesting and informative.

[@dheerbaldua9490]

Great video!

[@user-su6uw8ye5r]

Hello, @econplusdal can you do an updated Micro/Macro Effects & Major Topic Areas Paper 3 Revision for 2023 please thank you!

[@nawfaljafri]

Contractionary fiscal policy next 💪🏼🔥

[@huzaifarahman2232]

Yes Darius

[@JJ-ZUMA]

NO KINKY DEMAND CURVE IN PAPER 1

[@samirahman2106]

Hey @econplusdal could you make an edexcel hot topics list for paper 3

[@user-bd2pk5de9c]

If “ fiscal headroom” exists, does “monetary headroom” exist as well ?

[@barnabypaterson5104]

It’s not “monetary headroom” it’s “monetary flexibility” meaning that if there’s a shock in the future they have the ability to lower interest rates in the future e.g we couldn’t do this at the start of covid cause interest rates were 0.75% at the start so could only be dropped to 0.1% limiting its effectiveness

[@reubenwizard]

the goat

[@matholympians4503]

🐐

[@premraghvani]

Hey there, I noticed you said that with high interest rates the propensity for any old tom dick and harry borrowing is low, meaning less risks to banks, but why did the financial crash happen causing bank failure, when base rates were high? Ik the banks in the UK and US were offering more than 100% equity in mortgages but cost of borrowing wws also high innit?

[@namirelkhazen4253]

w video

[@tomatosoup2193]

what's the best way to revise using dal's videos? do u guys rewrite his notes + what he says or just listen and memorise. how do u guys do it

[@zacweston-edwards8849]

make flashcards summarising his videos

[@mainbraine]

@@zacweston-edwards8849 🙌🙌🙌🙌

[@MrAnybody04]

​@@zacweston-edwards8849 using anki

[@MCart1215]

@@MrAnybody04 Yes Anki is great. Gonna use it for uni deffo

[@theambergryphon4266]

@@MrAnybody04 damn I do the same

[@neuratictoast4222]

Can someone help me understand. Can I use the classical model to show this instead of the keysain ?

[@FLAMEalan]

Yeah

[@P17RAS]

doesn't matter what you use eventhough keynesian is probs better

[@jameshan2308]

no you cant as you cant show the shifts in real output from ad increasing

[@P17RAS]

@@jameshan2308 you can but keynesian is more accurate at doing this

[@hamzamahamuud4258]

DALLL FROM DEEPPP

[@Matt-pw1sg]

HI EVERYBODY

[@user-bd2pk5de9c]

But wouldn’t the influx of hot money into the UK increase the money supply, further depreciating the pound ?

[@user-bd2pk5de9c]

As a evaluation point

[@felixmacphail6502]

its not necessarily increasing money supply - hot money flows works by increasing the demand for the pound because investors know higher interest rates will lead to higher profits on owning the pound rather than the dollar for example. This doesn't mean the supply of pounds of the market will actually increased as it is all saved as they look to profit from the interest rates. When they eventually sell you might see higher supply which would decrease the value of the pound so you could perhaps use this

[@relaxingjey7111]

@@felixmacphail6502 i agree hot money inflow would usually be on the demand side and not the supply side so it doesnt effect the money supply

[@benjhshe3993]

Is financial crisis and Great Depression likely to come up ?

[@P17RAS]

You mean financial markets; hopefully not

[@kitty-rf9zu]

@@P17RASdo you not know what financial crisis is or something 😭

[@P17RAS]

@@kitty-rf9zu na we weren't taught it cause the teacher was being bare slow. Now stop acting like a smartass

[@user-ln2qy9ns5g]

Do u think I can skip financial markets

[@FLAMEalan]

Fr, was revising it last two days and didn’t understand any of it

[@vvvss-cx1vd]

Probably, you just have to pray it’s not one of the contexts and paired up with something worse

[@philipp2781]

@@FLAMEalan Its pretty easy to understand tbh. All you need to know are the roles of financial sector, and the roles of the central banks. If you have time you could also learn about financial market failure but that's not as prominent. LMK if you have any questions and I can explain some things to you

[@rosettegolda232]

@@philipp2781 financial market failure.......... like systemic risk? or do you mean on a micro level?

[@philipp2781]

@@rosettegolda232 No, the theme 4 topic. Caused by externalities, speculation and bubbles, assymteric information, market rigging.

[@Hassan-17.]

DALLLLLLL

[@NicholasAn]

THE DON STRIKES AGAIN