Money Market Interest Rates - How Do Central Banks Set Interest Rates?
ฝัง
- เผยแพร่เมื่อ 14 ต.ค. 2024
- Money Market Interest Rates - How Do Central Banks Set Interest Rates? Video covering Money Market Interest Rates - How Do Central Banks Set Interest Rates?
Instagram @econplusdal
Twitter: / econplusdal
Facebook: www.facebook.c...
gaslighting myself into understanding this
Finally I've found some true economists in youtube. You are one of the best. So easy and your recent video's sound is much clear than before.
hands-down the best explanation of this I've found, thank you so much!
Where do you get your sweaters man? Great videos by the way. Still watching after I've finished my A levels :)
dal explaining what my teacher couldn't in a week 🙏 thank you
You’re amazing! I don’t think I could graduate if it weren’t for you 💕 thank you!!!
This is so good. Thank you! I was wondering if you know which is the dominant mechanism the central bank uses in Australia?
so real for this dal
Great video, thanks for your help!
Great video. I instantly subscribed.
Great video, keep it up!
please could you do a video of the financial sector and what it really means!? would be greatly appreciated
Hi sir can u please tell me that: is this video relevant for answering how a central bank can affect the money supply? Thanks. I would really appreciate that.
MAKES ACTUAL SENSE NOW
Super helpful, thanks!
Legend
Clearly explained.
So, commercial banks can't use all of their money for doing business, but have to keep a portion of it in central bank's account? Is this correct? And is it actually required?
It is correct and required by law, being mandated by the central bank. Banks will have to keep some reserve so that they will meet demand deposits and other on demand transaction. E.g if I deposit my money today at a commercial bank, given that it is not some type of interest earning account (saving), I will likely go back to the ATM or line up at the bank to withdraw it when I want to use it or if any emergency occurs. So If commercial banks uses the money for their business or give all away for borrowers, the public will not have any M1 money left to withdraw.
I don't know if that answered your question, but I hope it helps.
How many more videos do you have left?
You have made so many.
Sir can you give me answer this question. Discuss liquidity preference framework to evaluate the effect of monetary policy on interest rate.
is this in the edexcel spec, i cant find it.
how can the government buy back bonds before the maturity date?
Amazing (:
Your accent is so good
Doesn't fractional reserve banking mean that the commercial banks also control the money supply (and n it's not just the government)?
thats what I thought - its been 3 years, help?
@@MCart1215 No; fractional reserve banking is commercial banks deciding to lend out a large proportion of the money that is deposited with them as savings.
For example, if I save $10 in an HSBC bank account, HSBC may choose to lend $7 out of that $10 out. However, that $10 is created by the government, not the commercial bank. In other words, commercial banks don't control the money supply because they can't print money. They can only decide how much to lend out, which is fractional reserve banking.
@@tusharmehra7272 But that $7 will circulate and come back into deposits surely? Whats the point in the 'money multiplier' equation?
@@MCart1215 But how does your point mean that commercial banks control the economy's money supply?
@@tusharmehra7272 not necessarily control but don’t they increase it?
U r really wonderful
Isn't the 3rd factor just Quantitative Easing?
hem in quantitative easing they add money to their balance sheet before purchasing those bonds
Please save me mate
I thought commercial banks also create money?
no only the Bank of England controls the money supply.
@@maday9425 so I don’t understand what the money multiplier is fir
good job explaining one of the most corrupt destructive practices in history.