Agreed. He might be the only reason I kill my macro exam. Much better teacher than my professor

At the year 2013 was discovered The Progressive Growth of Money Supply Principle, which say you how the Money Supply must growth, i.e., the quantity of money that market needs: kzfaq.info/get/bejne/n897pZCalZiWnY0.html If we increase the money supply by an amount equal to the sum of interest generated by the financial system during the preceding period, the market interest rate will be the natural interest (Wicksell) Thanks to the Progressive Growth of the Money Supply Principle we know today that it is impossible to return to the Gold Standard. The Principle will force Central Banks to change de monetary policies.

@@wassermannberlin9848nice alt account mr. Pedro

same here man. i'm learning macro from knowing micro. it's hard to make everything flow and connect.

+Vanessa Arredondo Thanks Vanessa.

These wold increase the demand fro money

Checking accounts and debit cards are a part of 'M1 Money'; they have high liquidity. Whether they increase or decrease money demanded depends on the policy of that particular card.

oh god it's "paid"

Cuz its practically impossible to have "Zero" money in the economy!

The original source of the money comes from the government, whatever is in the market will not be increased unless the gov prints more money and lend to the bank, the gov controls the supply, and the interest rate

When people have money, they spend it. And some people spend more money when they have more of it. If you want to improve your financial management, you should consult with a financial advisor.

@@sherryie2 Factos!! Since the market became extremely volatile and pressure increased (I should be retiring in 17 months), I took the decision to work closely with a financial advisor. It has already been 9 months and counting, and I have made approximately 600K net from all of my holdings.

@@AUstinnesc credits to NICOLE DESIREE SIMON, one of the best portfolio manager;s out there. she;s well known, you should look her up

@@corrySledd Thanks for the info, i found her website and sent a message hopefully she replies soon.

For example, the fed lends money to the bank at 1% rate, then the bank lends the money to the public at 3%, and then they give ppl interest .5% for saving, then the bank is earning money at = - 1% cost + 3% income - .5% cost = 1.5% profit, and getting supply of money from checking accounts to lend more money to the public, if that makes sense you...

The interest rate is an equilibrium point, it's not something that can arbitrarily be changed. Rather it is the money supply that is changed by the federal reserve that is used to adjust the interest rate.

Thanks!

no if the fed prints money, that leads to inflation and they don't really want to raise inflation beyond the preferred amount. Also, yeah, everything starts with the fluctuation of interest rates made by the fed. but idk if this will help you now it's been three years since you posted this comment 😭😭

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Yes that's true, but i'm sure the "money" mentioned in the video was *BORROWED* "money". So the I(r) applied on that loan varies inversely with the quantity of the money the borrower is demanding, if that makes sense.

The "money" he is referring to is the money on our pockets or on checking accounts, if the interest is high the opportunity cost of having money in your pocket is high because you would rather have it in a savings account so that high interest pays you well

that's what I understood 😭

Nominal