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In response to the 2008 financial crisis, the Fed employed some new instruments and approaches to getting the economy back on track. In this video we explore three of these: quantitative easing, paying interest on reserves, and conducting repurchase (and...
 
In the United States, the Federal Reserve controls the supply of money. This makes it a pretty massive player in the US – and world – economy.The Fed can use the money supply and interest as tools to influence aggregate demand. But how the Fed does this...
 
As we've covered previously, the aggregate-demand aggregate-supply model is a useful tool for helping us understand what's going on in an economy. But it can get pretty complicated.In this video, we're going to take a look at the following real-world...
 
We’re going to explore the mechanics of the aggregate-demand aggregate-supply (AD-AS) model. In our example, we’ll measure the economy’s inflation rate as well as the real GDP growth rate on the vertical and horizontal axes.A country’s normal GDP growth...
 
There’s an old analogy about blind men grasping an elephant.Elephants are huge creatures. If you’re touching the trunk, but you can’t see the whole elephant, you’re going to have a very different perspective from someone touching a leg. It doesn’t mean...
 
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