This is based on an old theory of banking and investment that is now woefully outdated. Many textbooks and curriculums have stopped using it due to its deep incompatibility with the empirical studies that have been conducted on how credit actually works (hint, hint, it is *created* by private banks). I recommend people read the Bank of England’s content on how private banks create money, or do some research on Credit Creation Theory, if they want an explanation that more accurately aligns with reality.
Exactly, This video is absolute garbage. Does not even consider as a crucial factor that money can be created by private banks and government deficits, or the role of the central bank in setting interest rates. Can't believe than even after 2008 when clearly government borrowed a whole lot for the stimulus and interest rates were dropped to almost 0%, this theory of loanable funds is still around.
If savings = lending than lending would have no affect on aggregate demand.This position is clearly contradicted by historical facts. The financial intermediary/fractional reserve theories of banking have been empirically disproven and abandoned by numerous central banks. This textbook orthodox explanation of lending is deeply out of step with endogenous money and modern banking.
I've been binge watching your videos they are more informative than any economics course
The federal reserve has more to do with interest rates than any savers do.
This is based on an old theory of banking and investment that is now woefully outdated. Many textbooks and curriculums have stopped using it due to its deep incompatibility with the empirical studies that have been conducted on how credit actually works (hint, hint, it is *created* by private banks). I recommend people read the Bank of England’s content on how private banks create money, or do some research on Credit Creation Theory, if they want an explanation that more accurately aligns with reality.
Exactly, This video is absolute garbage. Does not even consider as a crucial factor that money can be created by private banks and government deficits, or the role of the central bank in setting interest rates. Can't believe than even after 2008 when clearly government borrowed a whole lot for the stimulus and interest rates were dropped to almost 0%, this theory of loanable funds is still around.
Me encantan estas clases!
where is the phase where you need to pay your debt? Like student loan debt and mortgage debt.
In the middle, some of the excess goes to savings and the rest to debt payment
This channel should have more subscribers
Retirement. That's such a cute notion.
,
very interesting!!
i would like to see more finance videos
Amazing videos
I have a question: interest rate are set by demand for loan or demand for loan set by interest rate??what is the causality loop here?
2:52 I ligete died.
What is a real consumption graph the 2008 - 2019 crisis along and during its aftermath ?
Fazendo pela EVG. 👍🏼
Waiting for higher consumption later 🤑🤗
loved it
Wow great video.
If savings = lending than lending would have no affect on aggregate demand.This position is clearly contradicted by historical facts. The financial intermediary/fractional reserve theories of banking have been empirically disproven and abandoned by numerous central banks. This textbook orthodox explanation of lending is deeply out of step with endogenous money and modern banking.
what will be the answers to the first three questions in the practice questions part?
Where we have to invest money?
what about this mmt thing?
This view
is more wrong than right.
5:08 lmao
I cant understand supply and demand.Im dumm.Crying on the couch.
Yes you are. I´m sorry
Max König You are selfish and a moron
what di you not understand you troll ? feed of my wrath
Mickey Mouse!