Search results “Reducing the money supply”
Controlling Money Supply
Controlling Money Supply [26/26] by openlectures It will be interesting to understand how money supply is controlled by the government. Here, we describe the three mechanisms through which money supply is controlled. -- ^^^ SUBSCRIBE above for more quick lectures! ^^^ VISIT openlectures: http://openlectures.org ABOUT openlectures: http://openlectures.org/team FOLLOW openlectures: FB - http://facebook.com/OpenLectures
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Fed Reducing the Money Supply Through Open Market Operations
A video taking students through a specific and concrete example of the Fed selling securities to reduce the money supply through open market operations.
Views: 684 Kyle Purpura
Money supply and demand impacting interest rates | Macroeconomics | Khan Academy
Examples showing how various factors can affect interest rates Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/MPC-tutorial/v/mpc-and-multiplier?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/monetary-system-topic/interest-price-of-money-tutorial/v/interest-as-rent-for-money?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course 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 Subscribe to Khan Academy's Macroeconomics channel: https://www.youtube.com/channel/UCBytY7pnP0GAHB3C8vDeXvg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 232037 Khan Academy
Financial market: Decrease in output and increase in money supply
In this video clip I explain what happens on the financial market if output decreases and the money supply increases.
Views: 1811 lostmy1
How Does A Reduction In The Discount Rate Affect The Money Supply?
S affects the money supply primarily through fed eral funds rate under current procedure. A decrease in the discount rate makes it cheaper for commercial banks to borrow money, which results an increase available credit and lending activity throughout economy. Asp "imx0m" url? Q webcache. Discount rate investopedia federal discount investopedia terms f federal_discount_rate. Figure 1 (a) if the central bank raises discount rate, then commercial banks will reduce their borrowing of reserves from fed, and instead call in loans to replace those increase money supply, federal reserve can. The fed's 1st lever open market operations. Investors will not take up loans because it's expensive, hence money supply reduce. How a central bank executes monetary policy principles of lecture 19 notesmonetary. Federal discount rate definition & example principles of macroeconomics section 11 main. Suppose the fed wants to increase money supply by reducing discount rate. This normally encourages banks to lower the rates they charge on loans, which increases borrowing. The opposite is called during a slow economy, the fed encourages growth in economy and money supply by reducing reserve requirements lowering discount rate. Changes in the money supply affect economy explain how each of following events affects monetary base, multiplier, and increase discount rate should have two effects 1) banks would decrease their borrowings reserves at window, which base 2) be open market operation fed can by buying or selling u. The fed will adopt a contractionary monetary policy to decrease the money supply in market by selling securities, raising reserve rate, and or increasing discount rate. The banks will also reduce the amount of money available for lending since inter bank rates is high when fed lowers discount rate, this increases excess reserves in commercial throughout economy and expands supply. There is no currency held by the non banking public),then deposit expansion multiplier required reserve ratio. As a result, the supply of federal reserve discount rate is what nation's central bank charges its member banks to borrow at window. A reduction in the discount ratean increase reserve requirementspurchase by fed of $100 million u. How do banks respond to a lower discount rate? Affect the money supply relationship between rate and federal funds finance chapter 40 5 controlling. Googleusercontent search. Treasury of $100 million in newly issued bonds to a commercial bankan increase the discount ratesale by fed $200 u. For instance, by increasing the discount cost of capital will increase hence making it unattractive to acquire. The discount rate & monetary policy how banks can borrow the and market interest rates federal reserve definition, impact, it works balance. Expansionary monetary policy is appropriate when the economy in a recession and unemployment problem. Why does the fed require a reserve? Partly to maintain solvency, but mostly this reduces money supply,
Views: 9 tell sparky
Effects of and increase in the money supply on interest rates and investment
Presentation on relationship between the money supply, interest rates, and investment.
Views: 2331 Presentations
How Does The Fed Buying Bonds Increase Money Supply?
To increase bank reserves, the fed buys some of government bonds from banks if money supply needs to increase, more. When the federal reserve purchases these treasurys, it doesn't have to print money do so. Isn't growing), increasing money supply (the sort that makes from thin air) is typically inflationary, and therefore, the average inflation adjusted interest first china japan are buying most of bonds, this simply untrue any remotely cursory investigation would reveal How do open market operations affect u. If the fed wants to increase money supply, it buys government bonds 17 dec 2012 i keep getting this question over and again so think it's time address more directly. Decides to reduce the money supply (and increase interest rates), bonds are sold in what is called open market operations by nyc federal reserve bank fed buys new faster than old ones mature. When there is an increased demand for base money, the central bank must act if it wishes to maintain short term interest rate. How does money supply increase in the long run? The fed buys sparknotes tax and fiscal policy monetary. It issues credit to the federal reserve more money spend. That increases the money supply, thus monetizing debt before recession, fed held between $700 and $800 billion of treasury notes on its balance sheet, varying amount to tweak supply. When the fed buys bonds, it increases demand for which pushes up price of thus lowering interest rate. The fed's control of the money supply csun. This moves the if economy is static (i. The fomc buys and sells government securities to set the money supply. What is quantitative easing defined and explained the balancemonetary policy harper collegebwhen bond prices decrease interest rates go up 6 if fed buys macroeconomic principles chapter 29&34 final!!!! quizlet. The bank now has an excess of reserve that they are able to use in 11 jan 2005 when the fed purchases bonds on open market it will result increase money supply. Money supply how do open market operations affect the u. To pay for these assets, new central bank money is generated through what channels do open market purchases stimulate the economy? A. When i refer to money am referring the most widely accepted media of exchange primarily currency (cash, coin and bank reserves) open market operations refers buying selling government bonds is primary tool used by federal reserve. Asp "imx0m" url? Q webcache. Crash course chapter 8 the fed money creation. It does this by increasing the supply of base money it goes to open market buy a financial asset, such as government bonds. For example, if you sell 14 aug 2017. When central banks buy government bonds, money supply increases as the bond sellers exchange their bonds for cash that then re enters. How does the fed buying bonds increase money supply? Youtube. As a result, commercial banks now have more currency and thus money in their reserves. The federal reserve purchases the government bonds in open market with curre
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Quantity Theory of Money - Fisher Equation
Quantity Theory of Money - Fisher Equation. Video covering The Quantity Theory of Money - Fisher Equation, why inflation is always and everywhere a monetary phenomenon for monetarists Instagram @econplusdal Twitter: https://twitter.com/econplusdal Facebook: https://www.facebook.com/EconplusDal-1651992015061685/?ref=aymt_homepage_panel
Views: 63586 EconplusDal
Measure of Money Supply Class XII Economics by S K Agarwala
For the first time in INDIA, textbook in Economics, Accountancy & Business Studies with FREE Video Lectures by Eminent Authors/Subject Expert. To buy books visit www.goyal-books.com To view FREE Video Lectures visit www.goyalsOnline.com/commerce About the Book » Written strictly according to the latest syllabus prescribed by the CB.S.E., New Delhi. » Up-to-date study material provided by using the latest available data. » Elaborate explanation of the concepts. » Summary (Points to Remember) given at the end of each Chapter. » Numerical Problems from previous years' question papers incorporated and solved in the respective Chapters. » Methodology of solving typical numerical problems given wherever necessary. » Methodology of drawing typical diagrams given wherever necessary. » Comprehensive Exercises given at the end of each Chapter. » Sample Question Paper given at the end of the book. » Multi-disciplinay Problems given at the end of the books. » Video lectures on each topic with replies to queries for better and clear understanding of the concepts by the Author/Subject Matter Expert. Benefits of Video Lectures » Easy to access anytime: With video lectures, students can learn anywhere from their mobile devices: desktops, laptops, tablets or smartphones. » Students learn when they are primed to learn. » Students can pause, rewind and replay the lecture. » Eases the distraction of having to transcribe the lectures. » Self-paced learning: Students can follow along with the lecture at their own pace, going more slowly or quickly » Bookmarking: Students can bookmark the point where they're up to in the video so they can easily return and continue watching the lecture at a later point. » Searchability: Students can easily search through the lecture to find the required sub-topic they need, without having to rewind and fast forward throughout the video. » Greater accuracy: Students will understand the lecture better and can make sure that they have not misheard anything. » Facilitates thinking and problem solving: It improves research skills, collaborative working, problem solving, technology and organisational skills.
How money gets destroyed - Banking 101 (Part 6 of 6)
See the evidence: http://www.positivemoney.org/how-money-works/banking-101-video-course/how-money-gets-destroyed-banking-101-part-6/ Remember how new money is created when a bank makes a loan? Well when someone repays the loan, the opposite process happens, and money is actually destroyed. It effectively disappears from the economy entirely. This is vitally important, because it means that if we, the public, start reducing our debts by collectively borrowing less and repaying more, then the amount of money in the economy will actually start to shrink. If we all collectively reduced our debts by £1billion, then the money supply of the economy will actually fall by £1billion. There will be £1billion less money changing hands in the economy. If we significantly reduce the debt then the shrinkage in the money supply could actually cause the economy to slow down or grind to a halt... -------------------------- SUBSCRIBE to Positive Money UK's videos: http://www.youtube.com/subscription_c... Like us on Facebook http://www.facebook.com/PositiveMoney Follow us on Twitter http://www.twitter.com/PositiveMoneyUK Follow us on Google+ http://www.positivemoney.org.uk/googl... Positive Money is a not-for-profit research and campaign group. They work to raise awareness of the connections between our current monetary and banking system and the serious social, economic and ecological problems that face the UK and the world today. In particular they focus on the role of banks in creating the nation's money supply through the accounting process they use when they make loans - an aspect of banking which is poorly understood. Positive Money believe these fundamental flaws are at the root of - or a major contributor to - problems of poverty, excessive debt, growing inequality and environmental degradation. For more information, please visit: http://www.positivemoney.org/ Animation by Henry Edmonds __________________________________ Help us caption & translate this video! http://amara.org/v/Bk61/
Views: 43673 Positive Money
Supply Chain Cost Reduction - 5 Key Levers
http://www.logisticsbureau.com Rob O'Byrne introduces his 5 key levers for Supply Chain cost reduction. The article is here: http://www.logisticsbureau.com/b/5keylevers.htm Book Series: http://www.supplychainsecretsbooks.com/series/ People often ask me what the most effective changes are that a business can make to their Supply Chain Generally to reduce costs which is the thing that most Supply Chain managers are trying to do these days But it's hard to do that whilst maintaining or improving customer service isn't it? Well not that hard actually So in this series of videos and articles I'd like to share with you the 5 things that I've found consistently make the biggest impact on Supply Chains And what do I base that on? Well 35 Plus years in Supply Chain and Logistics the last 20 or so in consulting working with hundreds of businesses across 23 countries in total That provides an interesting perspective on what really makes a difference and what doesn't. You know I come across so many businesses struggling to fix multiple Supply chain issues at once or trying to manage a whole range of Supply Chain improvement projects concurrently And what happens? They bog down and get disheartened They waste time waste resources and waste money instead of getting the benefits they so desperately need You need to be more focussed on the outcomes you really need. A quick summary of the video is: Get a strategy in place and understand your key cost and service drivers, use this to manage and increase customer profitability, then look at your distribution network efficiency, and finally measure the right LIMITED range of performance metrics that will help you drive improvements. This is an example of the material taught at Supply Chain School. http://supplychainschool.com/ Rob O'Byrne is the CEO of specialist Supply Chain Consultant firm, Logistics Bureau. http://www.logisticsbureau.com Also check out this great ebook on supply chain management: http://supplychainmanagementsecrets.com/
Views: 25781 Rob O'Byrne
What Is A Tight Money Supply?
Note a tight money policy might be pursued to limit inflation definition of monetary restriction supply in an economy by the central bank through (1) tightening credit qualifications, (2) soaking up. What do clear banks and control the size of money supply tight raising discount prime interest rates creates a economic environment where decreases. Decreases in the supply of money when is tight, interest rates on commercial loans, mortgages, credit cards, etcthese hikes are engineered by a central bank, such as federal monetary policy process which authority country, typically bank or currency board, controls either cost very that government pursues aims to keep economy stable manipulating. What is tight monetary policy? Definition and meaning money policy definition from financial times what a supply? Youtube. A policy in which a central monetary authority, for example, the federal reserve system, seeks to restrict credit and raise interest rates. The fed tightens policy or makes money tight by raising short term interest rates through changes to the discount rate, also known as federal funds definition of 'tight money' money, dear results from a shortage when monetary decreases supply and amount banks have lend, in order slow down economic activity 28 jul 2017 explanation (higher reduce demand inflation) diagrams examples illustrate. When the monetary authorities of a country adopt policy that decreases money supply and raises interest rates as means to slow down economic activity 17 jul 2017here's what explains tight condition & rupee's free fall. Compare easy money policy. Tight monetary policy definition from financial times tight investopediatight money dictionary. Et contributors apr 23, 2018, 04. Googleusercontent search. 50 pm istnewrupee10 thinkstock tight monetary policy takes the current economy, and reduces aggregate demand in order to lower inflation, lower real output, and raise 14 may 1982 the essence of the reagan administration's economic approach is a combination of a loose fiscal policy, marked by big tax cuts and big 17 sep 1981 an obvious result of this policy of so called tight money has been a rise in the prime rate, the interest that banks charge for loans to their most different components of the federal reserve, different types of money policy tools learn with flashcards, games, and more for free. Asp "imx0m" url? Q webcache. Tight monetary policy investopedia terms t tightmonetarypolicy. Tight monetary policy definition from financial times. Tight money policy makes decisions about the nations supply and interest rates. When the economy is not to change money supply, fed manipulates size of excess reserves held by contractionary or tight policy reverse an easy. What is a tight money supply? Youtube. Rupee here's what explains tight money supply condition & rupee's is a and loose monetary policy? Quoratight money, the new york timesfed's policy of chapter 16 federal reserve flashcards economics 15 effects tightening examples do phrases 'loose policy' 'tight harper college.
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Y1/IB 31) Monetary Policy (Interest Rates, Money Supply and Exchange Rate)
AS/IB 21) Monetary Policy (Interest Rates, Money Supply and Exchange Rate) - An understanding of how monetary policy works with reference to central bank inflation targeting as well. Twitter: https://twitter.com/econplusdal Facebook: https://www.facebook.com/EconplusDal-1651992015061685/?ref=aymt_homepage_panel
Views: 93886 EconplusDal
Monetary and Fiscal Policy: Crash Course Government and Politics #48
Today, Craig is going to dive into the controversy of monetary and fiscal policy. Monetary and fiscal policy are ways the government, and most notably the Federal Reserve, influences the economy - for better or for worse. So we’re going to start by looking at monetary policy, and specifically how the Federal Reserve uses interests rates as a means of controlling (or at least attempting to control) inflation. We’ll then move onto fiscal policy - that is the government’s use of taxation to raise and spend money. It’s all, well, pretty controversial, but as it seems Americans hate taxes the most, monetary policy is most often used - meaning that the Federal Reserve plays a hugely significant role in steering the U.S. economy. Produced in collaboration with PBS Digital Studios: http://youtube.com/pbsdigitalstudios Support is provided by Voqal: http://www.voqal.org All attributed images are licensed under Creative Commons by Attribution 4.0 https://creativecommons.org/licenses/... Want to find Crash Course elsewhere on the internet? Facebook - http://www.facebook.com/YouTubeCrashC... Twitter - http://www.twitter.com/TheCrashCourse Tumblr - http://thecrashcourse.tumblr.com Support Crash Course on Patreon: http://patreon.com/crashcourse CC Kids: http://www.youtube.com/crashcoursekids
Views: 321469 CrashCourse
Merely "Printing Money" Is Not What Causes Hyperinflation
Rohan Grey, of the Modern Money Network, on with Steve Grumbine of Real Progressives, discussing the causes of hyperinflation. Although the conventional wisdom is that hyperinflation is caused by simply "printing too much money," MMT asserts that this is not the case, and has never been the case. Rather, hyperinflation is almost always caused by some sort of political, ecological, or other economic crisis or breakdown, which in turn is reflected in the monetary system. The simplest cause of hyperinflation is supply-chain collapse. If the real productive sector in the economy suddenly becomes unable to meet demand for goods on a wide scale (for instance, if factories were decimated after a war, or farm output collapsed due to a famine), then prices must rise. If the demand is unable to subside (such as for essential goods like food) and supply cannot be restored or replaced (by substitution or imports) then prices will continue rising and won't stop. This is without regard to the size of the money supply. In fact, the money supply tends to endogenously grow: as prices rise, people need more money to make the larger transactions, so they borrow more from banks and liquidate assets with the central bank, growing the money supply. In this way, "printing money" is actually a consequence, not a cause, of hyperinflation. If the government were to try to clamp down on the money supply, chances are that 1) they wouldn't be able to, and/or 2) people would start using other things as money. (Government deficits can also become a positive feedback mechanism in this way, because the government pays current prices but tax collections are calculated on a lag, so the deficit will tend to widen, making the problem worse.) This is what happened in Zimbabwe and in Venezuela. In Zimbabwe, racial politics trumped economics, leading the Mugabe government to evict all the experienced white farmers with inexperienced black ones, with little provision for transition or training. The result was that farm output collapsed by 80%. Prices must rise in that situation. In Venezuela, the government imposed price controls below the cost of production, which forced most of the private sector out of business. Due to their large foreign debt in dollars, they restricted imports (which would lead to loss of dollar reserves for the government, and therefore inability to service its dollar-denominated debt), leading to severe shortages that could not be solved. In this situation, prices must rise. In Weimar Germany, the situation was caused by huge imposition of Germany of reparations for WW1, payable in gold and foreign currencies. When it became clear that Germany didn't have this foreign currency, and that there would be no debt relief from Germany's creditors, Germany was forced to sell its own currency in the foreign exchange markets, in amounts of something like 30% of GDP, which drove down the exchange rate. This increased the cost of imports and, coupled with foreign occupation of industrial lands and mass worker strikes reducing domestic capacity too, led to elevated inflation in Germany. Workers began to demand that their wages be indexed to inflation, leading to a self-feeding spiral: as the exchange rate went down, wages went up, leading to higher prices, leading to a lower exchange rate and higher wages, leading to higher prices...This is called a "wage-price spiral." So clearly, the cause of hyperinflation is not simply the government "spending too much." Each case is unique, but the elements that tend to be present can include fixed exchange rates, foreign-denominated debt, crisis of supply, indexation of prices or wages, loss of ability to enforce taxes, political or other social breakdown, or losing a war. Read a bit more about hyperinflation here: https://pdfs.semanticscholar.org/e20b/05c4630543d7506d93b89713685c9372717a.pdf Read about why it's not simply caused by government debt or deficits: http://www.realprogressivesusa.com/news/economic-issues/2017-01-26-what-if-the-government-prints-money-to-pay-the-national-debt Some statistical evidence that money supply growth doesn't cause inflation: https://www.ineteconomics.org/perspectives/blog/rapid-money-supply-growth-does-not-cause-inflation More about the specific case of Weimar Germany: http://socialdemocracy21stcentury.blogspot.com/2014/04/joan-robinson-on-weimar-hyperinflation.html More about the specific case of Zimbabwe: http://bilbo.economicoutlook.net/blog/?p=3773 Watch the whole video here: https://youtu.be/D3hu3rt2SOI Follow Deficit Owls on Facebook and Twitter: https://www.facebook.com/DeficitOwls/ https://twitter.com/DeficitOwls And follow our sister page, Modern Money Memes: https://www.facebook.com/ModernMoneyMeme/ https://twitter.com/ModernMoneyMeme
Views: 1607 Deficit Owls
How to Reduce Debt and Grow the Economy: Milton Friedman on Budget Reconciliation Legislation (1993)
Friedman was best known for reviving interest in the money supply as a determinant of the nominal value of output, that is, the quantity theory of money. Monetarism is the set of views associated with modern quantity theory. Its origins can be traced back to the 16th-century School of Salamanca or even further; however, Friedman's contribution is largely responsible for its modern popularization. He co-authored, with Anna Schwartz, A Monetary History of the United States, 1867–1960 (1963), which was an examination of the role of the money supply and economic activity in the U.S. history. A striking conclusion of their research regarded the way in which money supply fluctuations contribute to economic fluctuations. Several regression studies with David Meiselman during the 1960s suggested the primacy of the money supply over investment and government spending in determining consumption and output. These challenged a prevailing, but largely untested, view on their relative importance. Friedman's empirical research and some theory supported the conclusion that the short-run effect of a change of the money supply was primarily on output but that the longer-run effect was primarily on the price level. Friedman was the main proponent of the monetarist school of economics. He maintained that there is a close and stable association between inflation and the money supply, mainly that inflation could be avoided with proper regulation of the monetary base's growth rate. He famously used the analogy of "dropping money out of a helicopter.",[46] in order to avoid dealing with money injection mechanisms and other factors that would overcomplicate his models. Friedman's arguments were designed to counter the popular concept of Cost-push inflation, that the increased General Price Level at the time was the result of increases in the price of oil, or increases in wages; as he wrote, Inflation is always and everywhere a monetary phenomenon. — Milton Friedman, 1963.[47] Friedman rejected the use of fiscal policy as a tool of demand management; and he held that the government's role in the guidance of the economy should be restricted severely. Friedman wrote extensively on the Great Depression, which he termed the Great Contraction, arguing that it had been caused by an ordinary financial shock whose duration and seriousness were greatly increased by the subsequent contraction of the money supply caused by the misguided policies of the directors of the Federal Reserve. The Fed was largely responsible for converting what might have been a garden-variety recession, although perhaps a fairly severe one, into a major catastrophe. Instead of using its powers to offset the depression, it presided over a decline in the quantity of money by one-third from 1929 to 1933 ... Far from the depression being a failure of the free-enterprise system, it was a tragic failure of government. — Milton Friedman, Two Lucky People, 233[48] Friedman also argued for the cessation of government intervention in currency markets, thereby spawning an enormous literature on the subject, as well as promoting the practice of freely floating exchange rates. His close friend George Stigler explained, "As is customary in science, he did not win a full victory, in part because research was directed along different lines by the theory of rational expectations, a newer approach developed by Robert Lucas, also at the University of Chicago." https://en.wikipedia.org/wiki/Milton_Friedman
Views: 15797 Remember This
Reducing GHG in Ag Supply Chain
Video about the importance of Nitrogen management on farms and its impact on GHG reductions. Across a supply chain, this can add up to millions of tons in reduced GHG's while farmers and suppliers make more money
Views: 82 Steven Ridder
59. How the Fed Changes Interest Rates
Practice trading with a free demo trading account: http://bit.ly/IT-forex-demo3 Continue your trading and investing education: http://www.informedtrades.com/ A lesson on open market operations and how the federal reserve increases and decreases the money supply in order to move interest rates and what this means for traders of the stock, futures, and foreign exchange markets. In our last lesson we looked at the structure of the Federal Reserve and the components of the FOMC, the portion responsible for implementing Monetary Policy. Now that we have an understanding of this, we can look further into exactly how monetary policy is facilitated and what happens to markets under differing scenarios. Monetary Policy very simply is anything which relates to action by the Federal Reserve to influence the amount of money and credit available in the economy. To understand exactly what this means, one first must understand the concept of fiat monetary systems. Fiat Monetary Systems: The United States, like most major economies, has what is known as a fiat monetary system. A Fiat Monetary system very simply is any system which uses a monetary unit (in this case the US Dollar) which is not convertible to some commodity, in general a precious metal such as gold. Fiat money, is money that is backed by the credit of some entity, normally a government, and the value for which is derived from its relative scarcity and the faith placed in it by the population which uses it. This is important to us as traders because the fact that the Dollar is not convertible to a commodity such as gold gives the Federal Reserve the ability to increase or decrease the money supply as it sees fit, or in other words to enact Monetary Policy. With this in mind the 3 tools available to the Fed for enacting monetary policy are: • Open Market Operations • The Discount Rate • Reserve Requirements The most common tool that the Fed uses, and therefore the one that we will cover, is Open Market Operations. Once we have an understanding of this and how increases or decreases in the supply of money affect demand and prices, the other two less commonly used tools will be more easily understood. Through something which is known as the Open Market Committee, the Fed increases and decreases the supply of money by buying and selling US Government securities. When The Fed wishes to reduce interest rates they will increase the supply of money by buying government securities using money that was not available in circulation before they made their purchase. As with anything, when additional supply is added and everything else remains constant, price normally falls. In this case the price that we are referring to is the cost of borrowing money or interest rates. Conversely, when the fed wishes to increase interest rates they will instruct the open market committee to sell government securities thereby taking the money they earn on the proceeds of those sales out of circulation and reducing the money supply.
Views: 43037 InformedTrades
How The Fed Controls The Money Supply
How the fed uses its balance sheet to control the money supply
Views: 4382 cedec0
IRS Kickbacks & Taxes = Interest Only Payments on National Debt Money Supply
The USA Money Supply in the economy is created out of debt = National Debt. President Regan audited the IRS using independent accounting firm investigation called "The Grace Commission" and they found that every singe penny that the IRS collects from Government Employees and "volunteer" Non-Trade or Business Non-Public Officials (most people in the USA) goes towards the INTEREST ONLY PAYMENTS of the National Debt, and that is debt NEVER meant to be paid off. When every you hear a politician or a Talk Show Host say we should "reduce the borrowing or pay off the National Debt" he should say "I WANT TO REDUCE THE MONEY SUPPLY BY PAYING OFF THE NATIONAL DEBT". Income Taxes pay the interest only on both the U.S. Money Supply for Federal Government and the American Money Supply!!! Ref Video = The Money Masters www.themoneymasters.com SEDM.org LostHorizons.com The Government of every country on Earth should be creating the Money Supply, not a private Corporation = The Federal Reserve, IMF, BRICS, Bank of International Settlements (funds both sides of all wars), etc..
Views: 69 Jihadi Scottie
Tips To Reduce Electricity Consumption of an Air Conditioner
A few Tips to reduce AC electricity consumption: 1) Ideal Temperature In an air conditioner, higher the temperature that you set, lower is the electricity consumption. We have seen that 25 degree celsius is an ideal temp for both cooling comfort and electricity savings. If you set the temp lesser than 25, then your ac will consume more electricity. Using ceiling fans helps to regulate the cooling of the ac throughout the room. However, if the roof of your house is directly facing the sun, then avoid using ceiling fans along with air conditioners. 2) Placement of outdoor unit If the outdoor unit of your air conditioner is installed at a place where it gets a lot of heat from the sun or from other heat emitting appliances, then the cooling of the ac will be reduced. Also make sure that the outdoor unit is not placed in a cluttered space for maximising its output. 3) Insulation Air conditioners are meant to cool enclosed spaces. So it is very important that the heat entering the room through the walls, ceilings and windows should be minimised. For doing that, you can white-paint the roof of your house, or use thermal insulation for the ceiling. Thermal insulating wallpaper can also be used for the walls of the room. Keeping the doors and windows closed and using curtains will help in insulation. 4) Maintenance Clean the filters of the ac before start of the season as unclean filters block the air inflow. Also make sure that you don’t miss out on the Annual Maintenance Contract Audio Credits: "Locally Sourced" by Jason Farnham YouTube Audio Library
Views: 481330 Bijli Bachao
What Is A Tight Money Supply?
The effects of tightening monetary policy how to distinguish between tight & loose. Issue and debate fed's policy of tight money nytimes what is money? Definition meaning investor words. Why would any nation want a tight money policy? In order to when the supply is eased, interest rates in general decrease. Asp url? Q webcache. Compare easy money policy. Redirected from tight monetary policy) also found in dictionary, thesaurus. Themoneyillusion the fed's risky and reckless tight money policy. Tight money generally has a negative effect on tight. Note a tight money policy might be pursued to limit inflation nov 28, 2012 monetary implies the central bank (or authority in charge of policy) is seeking reduce demand for and definition. Also known as 'dear money' tight money policy definition. Tight monetary policy investopedia terms t tightmonetarypolicy. When the monetary authorities of a country adopt policy that decreases money supply and raises interest rates definition tight can be borrowed only at high rates, usually because or some other cause low liquidity in restriction an economy by central bank through (1) tightening credit qualifications, (2) soaking up increase initial cash deposit x 1 (over) rrr. Chron what is a tight and loose monetary policy? Quora. Inverted (tight money) yield curve this is the opposite of what you'd expect. Which of these situations is most likely to cause the fed introduce a tight money supply list and describe three tools uses control supplyeasy o lower discount rate rise condition in which credit restricted interest rates, consequently, are relatively high. The fed tightens policy or makes money tight by raising short term interest rates through changes to the discount rate, also known as federal funds definition of 'tight money' a situation in which loans are very difficult obtain given country. Googleusercontent search. Tight money policy dictionary. If you do have the opportunity to secure a loan, then interest rates are usually extremely high. Tight monetary policy financial dictionary the free. Related to tight monetary policy accommodative policy, sep 17, 1981 an obvious result of this so called money has been a rise in the prime rate, interest that banks charge for loans their most definition central bank designed curb inflation by increasing reserves commercial (and consequently reducing federal reserve uses policies manage overall economic decreases supply eventually decrease gdp, implemented reserve, influences amount available consumers and businesses, particularly within credit takes current economy, reduces aggregate demand order control supply, rates inflation, loose are often used apex any country jun 19, 2012 who says fed is ultra tight? Actually, ben bernanke said 2003, when he argued were if allows its cost increases. A policy in which a central monetary authority, for example, the federal reserve system, seeks to restrict credit and raise interest rates. Chapter 14 learning objectives monetary
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Y1/IB 37) Policies to Reduce Inflation (Demand Pull and Cost Push) with Evaluation
AS/IB 27) Policies to Reduce Inflation (Demand Pull and Cost Push) - All the policies available to government to reduce both demand pull and cost push inflation Twitter: https://twitter.com/econplusdal Facebook: https://www.facebook.com/EconplusDal-1651992015061685/?ref=aymt_homepage_panel
Views: 30542 EconplusDal
UNDERSTANDING ECONOMICS: INFLATION Check out the entire free forex course (in process): http://www.informedtrades.com/f7/ The Free Forex Academy is a partner of InformedTrades.com, a community of traders dedicated to learning. At the Free Forex Academy, we are in the beginning stages of creating an entire comprehensive series of courses on forex trading. This is the 5th vid in the fundamentals section- a section that applies, not just to forex, but to all markets, or for those simply interested in economics. Practice forex trading with real time charts and live price feeds for free while you learn. Get a totally free virtual trading account here- http://clk.atdmt.com/FXM/go/166058821/direct/01/ Text from vid: Inflation is defined as an overall increase in the price level. Or, in other words, an overall decrease in the purchasing power of the dollar. When inflation occurs, currency buys fewer goods and services. The most effective tool used to gauge the level of inflation is the Consumer Price Index, or CPI. The Consumer Price Index is a basket of about 400 commonly purchased goods and services that is used to represent overall consumption. Each month, the Department of Labor checks the prices of these 400 different items in 85 areas all over the U.S. Inflation exists when the average cost of the items is rising. If the average cost of these items remains the same, there is no inflation, even though most likely the prices went up on some of the items, while the prices went down on others. The overall percentage of increase or decrease of cost for these items from year to year is the annual inflation rate. Well cover the Consumer Price Index in greater detail in a later video. There are two types of inflation: demand-pull inflation and cost-push inflation. Demand-pull inflation occurs when the demand for goods and services increases faster than the supply of goods and services. This increase in demand could come from increases in the money supply, or increases in the amount of money government spends. Demand-pull inflation is sometimes described as too much money chasing too few goods. When demand increases, there would be a shortage of many items if prices stayed at the same level. However, prices will not stay at the same level. When theres a shortage of something, the price on that item will rise until it hits an equilibrium. This causes a rise in the overall average of prices. Cost-push inflation happens when there is an increase in the cost to produce goods and services. These increased production costs could be increases in the cost of raw materials, energy, or any other item used in production. There also could be increases in wages. This is sometimes referred to as wage-push inflation, or the price-wage spiral. The government attempts to combat inflation using fiscal policy and monetary policy. Fiscal policy is the use of the governments taxing and spending powers to attempt to accomplish economic pulls. Fiscal policy can be used to decrease spending to reduce demand-pull inflation. Government can reduce total spending by reducing its own spending. It could also reduce overall spending by raising taxes, which leaves consumers with less money to spend on goods and services. Monetary policy involves the changing of interest rates and availability of loans to attempt to accomplish economic goals. The Fed can reduce spending by raising interest rates and making loans harder to obtain, which in turn reduces demand-pull inflation. Inflation can never be totally eliminated. Furthermore, efforts to reduce inflation tends to cause unemployment, just like efforts to reduce unemployment tends to cause inflation. Because of this tradeoff, policymakers have to struggle with which is worse when making policy decisions. Should they attempt to reduce inflation at the cost of higher unemployment? Should they attempt to reduce unemployment at the cost of higher inflation? These questions are the subject of much debate among economists. And while these policies might work good in theory, its safe to argue that theyre not as effective as one might hope. There are some other terms worth mentioning briefly. The first is deflation. Deflation is defined as the general drop in the price level. Or, to put it another way, an increase in the purchasing power of the dollar. Deflation occurs during recessions when the GDP is declining. Because of the decline in demand, sellers must reduce their prices to attract buyers, which causes an overall price decrease, also known as deflation. Music: Danse Macabre - Low Strings Finale (Theme) Witch Hunt Dangerous Crisis Gustav Sting Home Base Grove by Kevin MacLeod incompetech.com
Views: 13127 InformedTrades
Measures to Control Inflation
In this module, the learner will understand the monetary as well as fiscal measures to control the rising inflation. This is a product of Mexus Education Pvt. Ltd., an education innovations company based in Mumbai, India. http://www.mexuseducation.com, http://www.ikenstore.in
Views: 55707 Iken Edu
Why Governments Create Inflation
Inflation can carry with it quite a few costs. But some governments, like Zimbabwe under President Robert Mugabe in the early 2000s, will go out of their to way to create inflation. Why? Well, in the Zimbabwe example, the government printed the money and used it to buy goods and services. The ensuing hyperinflation acted as a tax that transferred wealth from the citizens to the government. However, this is a fairly uncommon reason. Inflation doesn’t make for a good tax and it’s a last resort for desperate governments that are otherwise unable to raise funds. There are other benefits to inflation that would make governments want to create it. In the short run, inflation can actually boost economic output. However, as we’ve previously covered, an increase in the money supply leads to an equal increase in prices in the long run. If there’s a recession, governments might create inflation to spur productivity and ease the economic downturn. However, this type of inflationary boosting can be abused. Long-term boosting causes people to simply expect and prepare for it. Reducing inflation is also costly. If the process is reversed and the growth in the money supply decreases, we get disinflation. Unemployment will likely increase in the short run and an economy can go through a recession. But in the long run, prices will adjust as well. Inflation can be a neat trick for governments to boost productivity in an economy. But it can easily get out of hand and has even been likened to a drug. Once you start, you need more and more. And stopping is awfully painful as the economy shrinks. This concludes our section on Inflation and the Quantity Theory of Money. Up next in Principles of Macroeconomics, we’ll be digging into Business Fluctuations. Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Macroeconomics Course: http://bit.ly/1R1PL5x Ask a question about the video: http://bit.ly/2lcPkAy Next video: http://bit.ly/2kMc9ub
Milton Friedman Speaks: Money and Inflation (B1230) - Full Video
Inflation is blamed on many things. But it has only one cause: It is a monetary phenomenon. Inflation occurs when the quantity of money increases faster than the quantity of goods. Why does the money supply increase? Very often, it does so to enable the government to pay its bills without raising taxes. There's only one real cure for inflation. It is a cure that's easy to describe but difficult to apply: The government must reduce spending and print less money. The alternatives are both recession and double-digit inflation. Check out our Facebook page here: https://www.facebook.com/FreeToChooseNetwork Visit our media website to find other programs here: http://freetochoosemedia.org/index.php Connect with us on Twitter here: https://twitter.com/FreeToChooseNet Learn more about our company here: http://freetochoosenetwork.org/ Shop for related products here: http://www.freetochoose.net/ Stream from FreeToChoose.TV here: http://freetochoose.tv/
12 Most Affordable Ways to Reduce the Cost of Building a New House on a Budget
This video brings to you 12 Most Affordable Ways to Reduce the Cost of Building a New House on a Budget. Some of the most Affordable Ways to Reduce the Cost of Building a New House on a Budget include: 1. Find a Good Architect Allow me to draw the following analogy before I start; Most of us when we are sick, we visit the best doctor, or when we have a court case, we hire the best lawyer. But when it comes to building our dream house on the contrary we go for the cheap. A good architect will give you; • A Good Design – A good design builds a good house. • Efficient floor plan- Optimal room sizes without space wastage • Sustainable Design – Low running costs during occupancy • Good Finishes - Finishes carry the biggest cost of the house 2. Keep the Design Simple Most times in design, Less is always More. Keep the design simple but not simplistic. Too much zig and zag means more costs. Take off what you do not need and leave the essentials without compromising. A simple design entails: • Floor Plan – Square/Rectangular plans are cheaper to build than circular plans • Open plan living – Means less walling, more daylighting and sociable living environment. • Space Utilization – Use some spaces for multiple functions such as; Dining Cum Study • Roof Design- Complex roof design means more roofing materials leading to more costs. 3. Hire The Right Builder/Contractor This is the BIGGEST and most IMPORTANT decision for anyone planning to build their dream house. Hire a builder/contractor that will listen to you. This means he will build a house you want and not what he thinks you want. A good builder will guarantee you: • Minor Variations- A home build on Budget • No time overruns- A home build within the contract period • Good Workmanship- A home build without shortcuts • Experienced – Good connections with subcontractors 4. Bid out Your Cost Have quotations / bids from potential builders and compare their quotes. Remember cheaper is not necessarily the best. A good quote will tell you something about your potential builder; • A low Quote- Could mean Poor workmanship resulting future expensive repairs and maintenance • Optimal Quote- Could mean a builders discount and good connections with suppliers • A High Quote- Could mean too many subcontractors involved or building materials are subpar 6. Shop for Fixtures and Fittings Yourself The choice of house fittings is as subjective as the house owner. Therefore it makes economic sense for you to buy most of them yourself. Keep an eye for annual sale or discount at your local hardware. These may include: • Floor and Wall Tiles- Colours and Designs • Toilets , Wash Hand Basins, Kitchen Sinks • Inbuilt Ovens and Cooker • Kitchen and Dhobi/Laundry sinks • Flat Pack Kitchen Cabinets and Wardrobes 7. Smart material choices The choice of materials from the outset is key to managing costs of your building materials. The choices vary from: • Buying your materials yourself- Use Coupons, discounts or annual sale • Salvaging used materials- Recycled materials and Second hand fixtures • Choose a Forgiving Aesthetic- Low cost and Low maintenance 7. Small is Smarter. Keep it small. Just how much space for you need for your new house. For good Green credentials, building small is always better. • Scale Down- Get rid of stuff/space you do not need. • Climate- Design for the regional climate. Do you need a Basement/Garage in the tropics? • Space Utilization – Use some spaces for multiple functions such as; Dining Cum Study 8. Choose Your Friends Avoid peer pressure when building your house. Most people would be tempted to build what a friend has built, or Insist on the Architect designing for them a house like their friends. Since design is subjective, go with your gut feeling and pick what fits tour taste and preference as opposed to copy and paste. Unless your friends are contributing to your mortgage payment or construction loan, don’t fall to peer-pressure just because you want to feel like you fit-in. 9. Buy Stock Plans If you can’t afford an architect, architect designed stock plans like sheltermode.com offer an alternative affordable option. Most stock plans go for a fraction of the cost of professional fees and can be amended on site to suite the client’s needs with marginal costs. Don’t fall prey to plan books and articles in your local store or street vendor. Most of these books are outdated and lack any serious professional input in design and specific. Make sure to Like, Favorite and Share this video and Subscribe if you haven't do so already. https://sheltermode.com https://sheltermode.com/contact-us/ http://www.facebook.com/sheltermode https://twitter.com/sheltermode
Views: 852457 Alex A
Macroeconomics - Fiscal Policy and Monetary Policy
This video takes a look at fiscal policy and monetary policy. The video explains what fiscal policy and monetary policy are. It explains what the differences are between these two policies and how they are often applied. The video looks at what fiscal and monetary policies are intended to do and the problems they are expected or supposed to solve. These problem include the following: - Reduce inflation - Promote economic growth - Reduce unemployment - Stimulate investment - Reduce budget deficit - Improve balance of payments - Improve balance of trade - Reduce debt - Target deficient sectors in the economy Fiscal policy relates to Government expenditure, taxation, and subsidies. Government expenditure can be used to target areas of the economy that require additional stimulation. Government expenditure tends to go into hard infrastructure such as roads, transportation, hospitals, dams, power and energy plants, and schools. A key emphasis of Government expenditure is focused on ‘solutions’ rather than prevention of problems. Solutions that create other problems and eventually proliferate the existing problems are very popular with most Governments. It is important that solutions create other problems so that Government can continue to spend money in the future. Government expenditure also puts pressure on interest rates which increases the cost of private investment. Cost benefit analysis (CBA) is sometimes used to support Government expenditure on infrastructure. CBA can help determine which investment produces the highest returns in terms of welfare produced. Unfortunately, CBA generally does not determine Government expenditure but is used as a tool of manipulation to make a Government projects look more impressive to the taxpayers. Taxation is another part of fiscal policy. Higher taxation may reduce inflation be reducing disposable income and therefore, reducing demand. Lower taxation does the opposite and can stimulate economic growth and reduce unemployment. Tax is used to fund most forms of Government expenditure and is generally popular with ‘left wing’ Governments. ‘Right wing’ Governments tend to be expected to favour less active fiscal policy (less tax and less Government expenditure). Taxation is also a mechanism of transferring welfare from people on salaries and wages to those that run large corporations (multinational companies). A common furphy of taxation is that it reduces wealth and income inequality as income tax is structured to appear progressive. Monetary policy relates to the Central Bank which controls the money supply. The Central Bank can increase money supply (expansionary monetary policy) which will lower interest rates and this will encourage increased borrowing and decreased savings. This is claimed to stimulate the economy, increase demand for goods and services and reduce unemployment. Expansionary monetary policy has a strong correlation to inflation, see inflation video in the macroeconomics series; link is at the bottom of the post with other links to videos. The Central Bank can also reduce money supply (more likely to increase money supply but at a decreasing rate), this is called contractionary monetary policy. Contractionary monetary policy increases interest rates, which reduces demand for money and is intended to reduce inflation. Contractionary monetary policy may also increase unemployment and reduce national income. Monetary policy can be very dangerous as all the power lies with the Central Bank and the people have no influence on how the Central Bank conducts its business. The Central Bank is able to redistribute wealth through the increase in money supply. The value of money held by the people is reduced by inflation and wealth is transferred from the people to the banks that lend this newly created money. There is no restriction to the amount of money the Central Banks can print as this money is not supported by any tangible assets such as Gold. This money is known as fiat money and is backed by ‘faith’ and potentially could collapse at any time. If you enjoyed this video remember to click the like button and subscribe for more interesting videos. The macroeconomic series can be accessed at: https://www.youtube.com/watch?v=uthEP6GXQ-8&list=PL_-TsqunhENgk3E-1SPO55FMsXgbJtnE5 The inflation video can be accessed at: https://www.youtube.com/watch?v=YNfO5rYHJdM The official Spectrum Economics website can be accessed at: https://www.spectrumecons.com For more exciting videos go to my YouTube channel at https://www.youtube.com/channel/UCILwyLtjl7ZTlYOqFkAwLzw You can find me on LinkedIn at: https://www.linkedin.com/in/waynedavies-spectrumecons/ You can find me on Facebook at: https://www.facebook.com/SpectrumEconomics/ You can find me on Steemit at: https://steemit.com/@spectrumecons
Views: 656 Spectrum Economics
Money Supply Drops, Last Time This Happened It Ended In A Disaster - Episode 1338a
Check Out The X22 Report Spotlight YouTube Channel – https://www.youtube.com/channel/UC1rnp-CySclyhxyjA4f14WQ Join the X22 Report On Steemit: https://steemit.com/@x22report Get economic collapse news throughout the day visit http://x22report.com Report date: 07.21.2017 IMF executive board decides to give Greece a conditional loan but wants more austerity and a plan to reduce debt. Sales are plunging for GM, they are closing plants, laying off workers and discontinuing cars. Pensions are in trouble, many corporate pensions are underfunded and it is only going to get worse. The myth that there was cash on the side lines, is just that a myth, there is no more cash on the side lines.  The money supply has dropped and we have seen this back in 2008, this is an indicator that the economy is entering a recession. The central banks are panicking, once they announced that stimulus is ending the market took a dive, the central bank then backtracked on everything . All source links to the report can be found on the x22report.com site. Most of artwork that are included with these videos have been created by X22 Report and they are used as a representation of the subject matter. The representative artwork included with these videos shall not be construed as the actual events that are taking place. Intro Video Music: YouTube Free Music: Cataclysmic Molten Core by Jingle Punks Intro Music: YouTube Free Music: Warrior Strife by Jingle Punks Fair Use Notice: This video contains some copyrighted material whose use has not been authorized by the copyright owners. We believe that this not-for-profit, educational, and/or criticism or commentary use on the Web constitutes a fair use of the copyrighted material (as provided for in section 107 of the US Copyright Law. If you wish to use this copyrighted material for purposes that go beyond fair use, you must obtain permission from the copyright owner. Fair Use notwithstanding we will immediately comply with any copyright owner who wants their material removed or modified, wants us to link to their web site, or wants us to add their photo. The X22 Report is "one man's opinion". Anything that is said on the report is either opinion, criticism, information or commentary, If making any type of investment or legal decision it would be wise to contact or consult a professional before making that decision. Use the information found in these videos as a starting point for conducting your own research and conduct your own due diligence before making any significant investing decisions.
Views: 24219 X22Report
Ron Paul - Inflation Of Money Supply Will Solve Nothing
www.dprogram.net Dr. Ron Paul, the Champion of the Constitution & currently the world's most prominent representative of Liberty talks on CNN American Morning (17th October). Topics addressed include; Inflation, Death of the Dollar, End of Monetary System. - "It's an immoral system" - 'Can't trust McCain or Obama' - 'We're going to suffer' He hits it out of the park at the end section.. =D "Get the government out of the way, quit spending money, balance the budget, bring our troops home. And let the American people keep the money they earn, that means drastically reducing taxes, get the government out this over-regulation, give up on the idea that inflation solves every body's problems."
Views: 838 dprogramdotnet
How to reduce your Housing Loan interest cost to almost zero.
How to reduce your Housing Loan interest cost to almost zero. In this video, We are going to learn how can you use monthly SIP to reduce cost of your housing loan interest with real assumption and actual calculations. Connect with me: https://www.facebook.com/Nifyfy/ https://twitter.com/cakashoza https://plus.google.com/109416086497755161450
Views: 65712 Success Sequence
Macro 3.3- Long Run Aggregate Supply, Recession, and Inflation (LRAS)
In this video I explain the most important graph in your macroeconomics class. The aggregate demand and supply model. Make sure that you understand the idea of the long run aggregate supply and how to draw a recessionary gap and inflationary gap. Keep in mind that the "long run" is not a specific amount of time. The long run refers to enough time for resource prices (like wages) to adjust when there is a change in price level.Thanks for watching. Please subscribe. If you need more help, check out my Ultimate Review Packet http://www.acdcecon.com/#!review-packet/czji Macroeconomics Videos https://www.youtube.com/watch?v=XnFv3d8qllI Microeconomics Videos https://www.youtube.com/watch?v=swnoF533C_c Watch Econmovies https://www.youtube.com/playlist?list=PL1oDmcs0xTD9Aig5cP8_R1gzq-mQHgcAH Follow me on Twitter https://twitter.com/acdcleadership
Views: 421908 ACDCLeadership
How to save electricity at home, reduce electricity bill, save money, degital meter, bill, how to re
How to save electricity at home, reduce electricity bill, save money, degital meter, bill, how to read degital meter, slow degital meter, save, slow, meter, begli, बिजली, save power, device, #technicalsmooth, In this video today I will talk about how to save electricity at home and how to read degital meter unit, Hello n welcome dosto mai hu Lalan kumar or aap dek rehe #technicalsmooth Please Like share Subscribe kere सब्सक्राइब मेरा Vlog channel - aditya singhania Vlog Please Like share Subscribe kere with, Comments जरूर करें आपका मित्र Lalan kumar
Views: 216894 Technical smooth
Alan Greenspan on U.S. Monetary Policy, Economy, Employment, Fiscal Policy, Inflation Rates (2004)
In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] When the price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.[2][3] A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.[4] The opposite of inflation is deflation. Inflation affects an economy in various ways, both positive and negative. Negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, and if inflation were rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future. Inflation also has positive effects: Fundamentally, inflation gives everyone an incentive to spend and invest, because if they don't, their money will be worth less in the future. This spending and investment can benefit the economy. Inflation reduces the real burden of debt, both public and private. If you have a fixed-rate mortgage on your house, your salary is likely to increase over time due to inflation, but your mortgage payment will stay the same. Over time, your mortgage payment will become a smaller percentage of your earnings, which means that you will have more money to spend. Inflation keeps nominal interest rates above zero, so that central banks can reduce interest rates, when necessary, to stimulate the economy [5]. Inflation reduces unemployment the the extent that unemployment is caused by nominal wage rigidity. When demand for labor falls but nominal wages do not, as typically occurs during a recession, the supply and demand for labor cannot reach equilibrium, and unemployment results. By reducing the real value of a given nominal wage, inflation increases the demand for labor, and therefore reduces unemployment. Economists generally believe that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply.[6] However, money supply growth does not necessarily cause inflation. Some economists maintain that under the conditions of a liquidity trap, large monetary injections are like "pushing on a string".[7][8] Views on which factors determine low to moderate rates of inflation are more varied. Low or moderate inflation may be attributed to fluctuations in real demand for goods and services, or changes in available supplies such as during scarcities.[9] However, the consensus view is that a long sustained period of inflation is caused by money supply growing faster than the rate of economic growth.[10][11] Today, most economists favor a low and steady rate of inflation.[12] Low (as opposed to zero or negative) inflation reduces the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduces the risk that a liquidity trap prevents monetary policy from stabilizing the economy.[13] The task of keeping the rate of inflation low and stable is usually given to monetary authorities. Generally, these monetary authorities are the central banks that control monetary policy through the setting of interest rates, through open market operations, and through the setting of banking reserve requirements. http://en.wikipedia.org/wiki/Inflation In economics and political science, fiscal policy is the use of government revenue collection (mainly taxes) and expenditure (spending) to influence the economy.[1] According to Keynesian economics, when the government changes the levels of taxation and government spending, it influences aggregate demand and the level of economic activity. Fiscal policy can be used to stabilize the economy over the course of the business cycle.[2] The two main instruments of fiscal policy are changes in the level and composition of taxation and government spending in various sectors. These changes can affect the following macroeconomic variables, amongst others, in an economy: Aggregate demand and the level of economic activity; Savings and Investment in the economy The distribution of income Fiscal policy can be distinguished from monetary policy, in that fiscal policy deals with taxation and government spending and is often administered by an executive under laws of a legislature, whereas monetary policy deals with the money supply, lending rates and interest rates and is often administered by a central bank. http://en.wikipedia.org/wiki/Fiscal_policy
Views: 258 Way Back
What Does It Mean To Tighten Monetary Policy?
Googleusercontent search. The federal reserve headquarters in 11 apr 2011 a tightening of monetary policy is decision by central bank to use squeeze the growth demand economy an 23 jul 2017 fed led way as global has already pointed out how hard it may be sort what will mean if 2 feb yellen warned that delay could drive up distortions occasioned these interventions do great harm does work new. What the fed can do to tighten money supply cnbc. What is monetary tightening? Ing ezonomics. What does it mean to tighten monetary policy? Youtube. Tight money tight monetary policy definition from financial times tightening of. A tightening of policy would reduce the supply funds to banks and force them overheating an economy occurs when its productive capacity is unable keep pace with can be prevented by means constant infrastructure central often simultaneously tighten monetary in response this why generally conducted such as u. Federal how does a central bank go about changing monetary policy? It usually rises when the tightens by soaking up reserves. The classic definition of inflation is too many dollars chasing few goods. Money policy dictionary the effects of tightening monetary economics help. How does the fed's monetary policy affect yield curve? Market. Zealand? The reserve bank is the institution charged with implementing these factors mean that it difficult to know both when and how much raises ocr, tightening monetary does rba use this inflation target guide policy? second point concerns measurement definition of. The federal reserve uses tight monetary policies to reduce the effects of inflation and tighten economic market 28 nov 2012 central bank can also policy by restricting supply money. Money policy dictionary tight monetary investopedia terms t tightmonetarypolicy. To do this they can print less money or sell long dated definition of tight monetary policy restriction supply in an economy by the central bank through (1) tightening credit qualifications, (2) soaking up at dictionary, a free online with pronunciation, synonyms and translation11 apr 2011 many banks tighten loosen principally to ensure rate inflation does not move outside agreed rangetight takes current economy, reduces so, apex would adopt various means ways withdraw excess when authorities country that decreases raises interest rates as slow down economic activity what mean finance? The which deposit ratios make easily 8 sep 2010 below are some tools fed has its disposal for eventually. Mises a layperson's guide to monetary policy nz parliamentoverheating (economics) wikipedia. Asp url? Q webcache. As macro key term monetary policy tightening federal reserve now faces prospect of global the money supply will inevitably lead to a bust. What is a tight and loose monetary policy? Quora. Be consistent with lower inflation because demand usually means prices 14 mar 2014 understanding how the fed policy affects yield curve part 2 of 5 a tightening monetary rise in short term.
Views: 41 Question Bag
What Are The Different Types Of Monetary Policy?
Under a monetary policy seeks to further economic goals through influencing interest what type of will increase rates or reduce the money supply, What is policy? Objectives,types and tools balancewhat are types Business jargons. What are two types of monetary policy? Monetary policy meaning, objectives and instruments education center how the market works. Monetary policy and types slidesharemonetary basics federal reserve education. What is monetary policy? Objectives,types and tools the balancewhat are types of Business jargons. This article' distinguishes two approaches to monetary policy, innovation has eroded the distinctions between different sorts of financial sep 21, 2010 there are types instruments policy as shown below. Difference between monetary and fiscal policy vs faculty. Apr 18, 2017 central banks use contractionary monetary policy to reduce inflation. Fiscal policy involves the government changing tax rates fiscal vs monetary policythe business cycle approach to depends upon type of economic system. The most common are raising interest rates and selling securities through open market operations. Economy the two types of monetary policy are used to combat different economic issues. 13th chapter monetary policy moodle. Expansionary monetary policy increases the money supply in order to lower unemployment, boost private sector borrowing and consumer spending, stimulate economic growth there are two types of expansionary contractionary. Page 1 two types of monetary policy this article' distinguishes instruments quantitative & qualitative tools. These policies are applied by the monetary authority jun 28, 2013 policy is process which of a country control supply money for purpose promoting economic in practice, to implement any type main tool used does this buying or selling financial term 'monetary policy' refers what federal reserve, nation's central bank, influence amount and credit u. Growth through monetary policy boundless. Googleusercontent search. Monetary policy investopedia. They have many tools to do this. Understanding types of economic policy dummies. They are used for discriminating between different uses of credit types monetary policy instruments and regional housing prices a comparative study on the influences regulation in chinaauthors following points highlight top five lags policydata lag 2legislative 4. Expansionary policy is typically used to reduce unemployment during a read this article learn about monetary it's meaning, objectives and instruments the of are two types first, quantitative, may 27, 2013 different fiscal policy, which refers government spending authority can use that makes credit expensive in short supply an effort slow economy what type money by united states? . Monetary policy investopedia what is monetary policy? Objectives,types and tools the balance thebalance objectives types 3305867 url? Q webcache. They use expansionary monetary policy to lower unemployment and avoid recession broadly, t
Views: 50 sparky feel
Understanding the National Debt and Budget Deficit
In which John discusses the US national debt, the federal budget deficit, plans for shrinking or eliminating the deficit, and tries to provide some context to the political rhetoric and statistics that are constantly thrown around in an election season. Along the way, I hope you'll understand why the United States' sovereign debt hasn't led us to an economic crisis, but also why budget deficits need to shrink in order to ensure that credit remains inexpensive and the US continues to enjoy the trust of the world economy. (Friendly reminder: Educational videos, by extensive precedent, are allowed to be longer than 4:00.) Here's why I think the gold standard is a bad idea: 1. By restricting money supply to the supply of gold, you risk shrinking the money supply just because of a shock leading to a disruption in supply from mining. This creates a lot of volatility in the money supply for no reason. 2. The gold standard limits a government's ability to respond to changes in the market, which can (and has) led to unescapable deflationary spirals. 3. Far from inspiring investor confidence, its implementation would crush it: http://www.ocregister.com/opinion/gold-369936-standard-money.html Posters and stuff: http://dftba.com My tumblr: http://fishingboatproceeds.tumblr.com My twitter: http://www.twitter.com/realjohngreen HERE ARE A LOT OF LINKS TO NERDFIGHTASTIC THINGS: Shirts and Stuff: http://dftba.com/artist/30/Vlogbrothers Hank's Music: http://dftba.com/artist/15/Hank-Green John's Books: http://amzn.to/j3LYqo ====================== Hank's Twitter: http://www.twitter.com/hankgreen Hank's Facebook: http://www.facebook.com/hankimon Hank's tumblr: http://edwardspoonhands.tumblr.com John's Twitter: http://www.twitter.com/realjohngreen John's Facebook: http://www.facebook.com/johngreenfans John's tumblr: http://fishingboatproceeds.tumblr.com ====================== Other Channels Crash Course: http://www.youtube.com/crashcourse SciShow: http://www.youtube.com/scishow Gaming: http://www.youtube.com/hankgames VidCon: http://www.youtube.com/vidcon Hank's Channel: http://www.youtube.com/hankschannel Truth or Fail: http://www.youtube.com/truthorfail ====================== Nerdfighteria http://effyeahnerdfighters.com/ http://effyeahnerdfighters.com/nftumblrs http://reddit.com/r/nerdfighters http://nerdfighteria.info/ A Bunny (\(\ ( - -) ((') (')
Views: 942605 vlogbrothers
Banking Crazy Part 6 - Destroying Money
http://in-this-together.com - Banking Crazy Part 6 – Destroying Money. This series looks at the way money is created and why the monetary system is a problem that we should all care about. Discover how debt repayments reduce the amount of money in the economy. This is because money, created by privately owned banks, is always created in the form of debt. So if we pay down debt we also end up reducing the money supply. You will note that the government are very keen on “reducing debt.” https://www.youtube.com/watch?v=76YB2CtQF If you want to stop this insanity then please go to http://positivemoney.org
Y1/IB 29) Fiscal Policy (Government Spending and Taxation) with Evaluation
AS/IB 19) Fiscal Policy (Government Spending and Taxation) - An understanding of fiscal policy on both aggregate demand and aggregate supply with exam evaluation too Twitter: https://twitter.com/econplusdal Facebook: https://www.facebook.com/EconplusDal-1651992015061685/?ref=aymt_homepage_panel
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With money supply growth accelerating and credit numbers holding steady, China's domest...
WITH MONEY SUPPLY GROWTH ACCELERATING AND CREDIT NUMBERS HOLDING STEADY, CHINA'S DOMESTIC PLAYS ARE STILL GOOD BETS FOR THE INVESTOR, SAYS DAVID GAUD OF EDRAM. SHOWS: HONG KONG, CHINA (May 13, 2013) (REUTERS - ACCESS ALL) DAVID GAUD, SENIOR PORTFOLIO MANAGER, ASIA EX-JAPAN EQUITY, EDMOND DE ROTHSCHILD ASSET MANAGEMENT (EdRAM) 1. REPORTER OFF CAMERA SAYING: "How is the renewed weakness in the yen changing your view about Japan and the impact it's having on Japan's trading partners in the region?" 2. DAVID GAUD SAYING: "Yeah sure, absolutely. I mean, overall for now we think that the trade along Japan equity will continue to work well, at least until July and the election. Over the weekend we got confirmation that the G7 is endorsing the BOJ policy. And so are the global investors as we see the yen, the Nikkei is rising actually significantly. So overall that rally in Japanese equity will probably continue - especially that flow-wise we're going to see actually money out of the JGB. It should go actually into high-yield equity - Japanese equity names. Does it mean that it's going to be negative to the rest of Asia? We don't think so. There is a positive correlation historically between the Japanese GDP growth and the Chinese GDP growth. If Japan is to basically gain some percentage of growth in the coming years, China will benefit to a certain extent. It could be, in a sense, a ratio from one to ten. Let's say one percent increase in the GDP growth in Japan could create an extra 0.1 percent growth in the Chinese GDP in our assumption. If you talk about Korea for instance, which is the main competitor to Japan, once again we feel like we're going to have to look really closely sector by sector and corporates by corporates because the context will be very different. Yes, a weak yen is negative to the auto sector. And a weaker yen will be even more negative to that sector, so we stay cautious on that segment. At the same time in Korea if you take a stock like LG Chemical, this is a company that import raw material from Japan and they pay it in yen, which means that their cost is actually reducing. At the same time they do not...
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Americas's Money supply -How to fix the economy. Christian economics- Part 1
http://www.thestoryofliberty.net Christian economics- Money supply. According to the Bible a nation's monetary policy is tied to justice. America must abandon our support for the treasures of wickedness that unjust weights give us. We can restore a honest currency tied to silver and gold, as our founding fathers demanded in our Constitution (Article 1, Sect. 10).
Monetary Base Explained
An Easy Overview Of "Monetary Base"
Views: 6715 Christopher Hunt
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The Money Market- Macroeconomics 4.6
In this video I explain the money market graph with the the demand and supply of money. The graph is used to show the idea of monetary policy and how changing the money supply effects interest rates. Thanks for watching. Please subscribe Macroeconomics Videos https://www.youtube.com/watch?v=XnFv3d8qllI Microeconomics Videos https://www.youtube.com/watch?v=swnoF533C_c Watch Econmovies https://www.youtube.com/playlist?list=PL1oDmcs0xTD9Aig5cP8_R1gzq-mQHgcAH Follow me on Twitter https://twitter.com/acdcleadership
Views: 289535 ACDCLeadership
fallout music vidio
Fiscal policy can decrease unemployment by helping to increase aggregate demand and the rate of economic growth. The government will need to pursue expansionary fiscal policy; this involves cutting taxes and increasing government spending. Lower taxes increase disposable income (e.g. VAT cut to 15% in 2008) and therefore help to increase consumption, leading to higher aggregate demand (AD). With an increase in AD, there will be an increase in Real GDP (as long as there is spare capacity in the economy.) If firms produce more, there will be an increase in demand for workers and therefore lower demand-deficient unemployment. Also, with higher aggregate demand and strong economic growth, fewer firms will go bankrupt meaning fewer job losses. Keynes was an active advocate of expansionary fiscal policy during a prolonged recession. He argues that in a recession, resources (both capital and labour) are idle. Therefore the government should intervene and create additional demand to reduce unemployment. Monetary policy would involve cutting interest rates. Lower rates decrease the cost of borrowing and encourage people to spend and invest. This increases AD and should also help to increase GDP and reduce demand deficient unemployment. Also, lower interest rates will reduce exchange rate and make exports more competitive. In some cases, lower interest rates may be ineffective in boosting demand. In this case, Central Banks may resort to Quantitative easing. This is an attempt to increase the money supply and boost aggregate demand. See: Quantitative easing. Supply side policies for reducing unemployment Supply side policies deal with more micro-economic issues. They don’t aim to boost overall aggregate demand but seek to overcome imperfections in the labour market and reduce unemployment caused by supply side factors. Supply side unemployment includes: Frictional Structural Classical (real wage) Policies to reduce supply side unemployment 1. Education and training. The aim is to give the long-term unemployed new skills which enable them to find jobs in developing industries, e.g. retrain unemployed steel workers to have basic I.T. skills which help them find work in the service sector. – However, despite providing education and training schemes, the unemployed may be unable or unwilling to learn new skills. At best it will take several years to reduce unemployment. 2. Reduce the power of trades unions. If unions can bargain for wages above the market clearing level, they will cause real wage unemployment. In this case reducing the influence of trades unions (or reducing Minimum wages) will help solve this real wage unemployment. 3. Employment subsidies. Firms could be given tax breaks or subsidies for taking on long-term unemployed. This helps give them new confidence and on the job training. However, it will be quite expensive, and it may encourage firms to just replace current workers with the long-term unemployment to benefit from the tax breaks. 4. Improve labour market flexibility. It is argued that higher structural rates of unemployment in Europe is due to restrictive labour markets which discourage firms from employing workers in the first place. For example, abolishing maximum working weeks and making it easier to hire and fire workers may encourage more job creation. However, increased labour market flexibility could cause a rise in temporary employment and greater job insecurity. 5. Stricter benefit requirements. Governments could take a more pro-active role in making the unemployed accept a job or risk losing benefits. After a certain period, the government could guarantee a public sector job (e.g. cleaning streets). This could significantly reduce unemployment. However, it may mean the government end up employing thousands of people in unproductive tasks which is very expensive. Also, if you make it difficult to claim benefits, you may reduce the claimant count, but not the International Labour force survey. See: measures of unemployment 6. Improved geographical mobility. Often unemployed is more concentrated in certain regions. To overcome this geographical unemployment, the government could give tax breaks to firms who set up in depressed areas. Alternatively, they can provide financial assistance to unemployed workers who move to areas with high employment. (e.g. help with renting in London)
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Friedman Discredited - Final Cut
Nobel Prize winner Professor Milton Friedman relied on Monetary Theory to achieve successful economies and societies. He saw the challenge as controlling the money supply so it would grow at a steady rate. Our present financial crisis has shown that events can conspire to severely reduce the money supply and place the money supply well beyond the control of bankers, economists & thinkers. Professor Friedman also taught the world to believe in deregulation and privatization as keys to the growth of wealth. Bankers, economists & thinkers now tell us deregulation & privatization have brought on the present financial crisis resulting in an uncontrollable reduction in the money supply and concomitant deflation (i.e. recession or depression).
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Dawn Woodard: How Uber matches riders and drivers to reduce waiting time
Dynamic pricing, a key to the business model of Uber, depends on a complex algorithm that seeks equilibrium among a host of variables. If you use Uber to catch a ride now and then, you’ve probably noticed that a ride downtown at one time of day is a good deal cheaper (or more expensive) than a ride at another time. Although that may seem random, it is anything but. Dynamic, or so-called surge, pricing is a key part of the business model of Uber and competitors like Lyft. While you might not like paying more for a ride, using dynamic pricing to balance supply and demand makes Uber’s ride-sharing system more efficient, and ultimately more satisfying for both passengers and drivers, says Dawn Woodard, Uber’s senior data science manager of maps. Riders want wait times to be as short as possible, while drivers want as little waiting time between pickups as possible, Woodard explained during a presentation to this year’s Women in Data Science (WiDS) conference at Stanford, and via livestream to 150+ regional events in 50+ countries worldwide. If prices are too low, there will be fewer drivers willing to work, and that means longer wait times for riders. Higher prices give drivers an incentive to work at certain times and certain areas. Hitting an optimal price point at a particular time of day is a complex exercise in data science, requiring an algorithm that takes into account the location and number of both riders and drivers, the amount of traffic on the road, and the time and distance to pick-up and drop-off points. Mapping, Woodard’s area of responsibility, is key to resolving those problems. “Uber is a physical logistics system, meaning that every aspect of the rider experience, the driver experience, and creating a price and a match is influenced by the road network and predicting some quantities on it,” Woodard says. Making the calculations even more difficult is the necessity for pricing to change rapidly. “When we’re determining the price, we need to look at a short-term prediction of supply and demand. How many riders do we expect to be opening the app in the next, say, five minutes?” she says. In essence, the algorithm is searching for equilibrium, a price and pickup time for which there is as little wasted time as possible, which encourages riders and drivers to participate at a high rate.