Macro: Unit 2.6 -- Classical v. Keynesian Theories

Рет қаралды 356,428

Күн бұрын

Hey Everyone! I'm Mr. Willis, and You Will Love Economics!
In this video, I will:
- Define Smith's theory of "flexible" wages and prices and to explain how Smith believes
the market itself corrects the issues of recession and inflation
- Define Keynes's theory of "sticky" wages and prices and explain how Keynes believes the
government can intervene to correct economic contraction
- Identify the three ranges of the Keynesian aggregate supply curve, and identify when
certain conditions exist in the economy in each range
- Put each theory into historical context and stimulate discussion on these economic
schools of thought
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Пікірлер: 199

@svvetlanalana 6 жыл бұрын

omg this is perfect. You literally just wrote my entire exam for me!!!

@YouWillLoveEconomics 6 жыл бұрын

Glad I could help!

@theparadigm8149 2 жыл бұрын

I hope you don’t literally mean “literally” in this case… 🤭 that would be plagiarism!

@roseydays 6 жыл бұрын

i loved the way you used the graph to show a real live example of the great depression, made a lot of sense

@YouWillLoveEconomics 6 жыл бұрын

Awesome! Glad it was helpful. Thanks for the feedback!

@grantrobertronquilloiii 4 жыл бұрын

It helped me a lot understanding this topic especially during this COVID-19 pandemic. My professor just gave us a handout and voila.. exam is real. Thanks for explaining this as briefly.

@TheRAYZ87 6 жыл бұрын

I've been listening to my macro professor for a month talking about these theories and couldnt understand a single word she was saying. problem solved in 13 minutes xD

@YouWillLoveEconomics 6 жыл бұрын

This may be the best comment I’ve received yet! I’m so glad that I can help you when you need it most. Spread the word! Thanks for the feedback and the support!

@madampresident2053 Жыл бұрын

Watching this video all the way from South Africa University of South Africa 3rd year student. Thank you for making me understand Keynes in a simple way.

@MoizRafay 5 жыл бұрын

This is an incredible explanation. You did what books and professors failed to do. Thank you god for bringing this to me.

@ashfaqahmad4172 5 жыл бұрын

thank you for helping others! really this was my first and fruitful experience. very clear and interesting short lecture!

@feliciah3705 3 жыл бұрын

I’m from germany and we’re learning behavioural economics in english at university.. and this really helped me, since our professors are so bad at explaining stuff in a foreign language! Great job!

@anindyamitra2880 4 жыл бұрын

As an economics enthusiast , this is gold. Great explanation

@Dicepit12 3 жыл бұрын

Love it, Thank you, I needed some clarity for the BEC portion of the CPA. That was perfect.

@robertbuen7390 2 жыл бұрын

Glad I found this video. Helped me understand my weekly ECON lesson in under 15 minutes!

@2Fa2Bu 3 жыл бұрын

this is one of the best explanations of keysesian theory. thank you so much.

@hossainjoki3146 4 жыл бұрын

What I did not understand after hours of lecture and study; Got it quite clear in 13 mins! Thanks a lot!

@alicenyakundi4568 3 жыл бұрын

this is a very wonderful class that enlightened my mind in economics.my teacher gave me very mere explanation but now am at a position of helping others to understand.

@vinboscotomy7128 3 жыл бұрын

Just Amazing. You should be named as the - "The Best Economics teacher". After 1 year of learning macroeconomics, This 10 mins helped learn more than Ever.

@nitinkarnwal519 3 жыл бұрын

Really cleared all the confusion. Thank you Will.

@sohanchanda8042 3 жыл бұрын

really the best explanation seen so far really this 13 minutes is much better than the semester explanation in colleges

@suhaila2055 6 жыл бұрын

I couldn't understand the difference between the two theories and I searched through the internet but nothing came close to this video. Thank you so much!

@YouWillLoveEconomics 6 жыл бұрын

This is fantastic to hear! Glad it was helpful. Thanks for the feedback!

@sujeetkumar-pd9gd 5 жыл бұрын

Your 13 minutes video was better than three month session of my teacher. Thanks for making it. If possible please make video on application of game theory in macro/micro economics

@xaleavemealone15 5 жыл бұрын

Could you also make lecture videos on international trade theory and econometrics? loved your presentations!

@lifeisnotajokee Жыл бұрын

Hi Mr. Willis, I didn't just love economics but also your style of teaching.

@leohuo4263 2 жыл бұрын

I really needed some background knowledge into how these 2 theories worked in order to do my explanation of the AD-AS graph

@islandchic5345 3 жыл бұрын

Just wanted to leave a thank you comments section . Your video was very helpful, with it I was able to easily grasp the concepts

@johnsolomonlegara2248 5 жыл бұрын

Honestly, this is a gift from heaven hahaha

@brisa5104 Жыл бұрын

I like how describle every detail in a single video. You're fun and can teach better than my professor

@saminaa6802 4 жыл бұрын

Thank you so much! This helped me understand everything the night before exam

@erinf4y 3 жыл бұрын

I had to watch in .75 playback speed to follow but thank you so much!!! this was so clear and to-the-point

@paulaewert9494 2 жыл бұрын

This was an awesome explanation! thank you so much for sharing your knowledge with us!!

@cheyannecummings3655 6 жыл бұрын

This was very helpful. Your delivery was effective. Thank you

@YouWillLoveEconomics 6 жыл бұрын

Awesome! Glad it was helpful. Thanks for the feedback!

@soumyajeetmitra6958 3 жыл бұрын

THANK YOU SIR for your short brief history and summary based answer to this much asked question☺️

@darictesfaye3808 2 жыл бұрын

Thank you for a very clear and interesting presentation of the topic!Just Perfect!

@oc_vatsal_1197 3 жыл бұрын

Could you please make a video on how Keynesian Theory applies in today's modern world. Amazing videos!!

@NewhamMatt 2 жыл бұрын

I'd love to see a video of how Keynesian theory either failed or failed to be correctly applied in the recession of the 1970s.

@Mpivovitz 2 жыл бұрын

@@NewhamMatt the 1970s was a supply side shock (oil shock) which caused input prices to rise and hence inflation.

@anshudwivedi326 3 жыл бұрын

This is by far the best video which explained Keynesian Theory

@HankHill1 5 жыл бұрын

What an excellent breakdown. Awesome.

@CM-tp6un 5 жыл бұрын

Do you have anywhere we can donate to sustain your channel? This channels' explanation and execution are unmatched.

@kadityasrinivas1665 3 жыл бұрын

This guy is a genius in teaching concepts.

@graceanne3065 5 жыл бұрын

Very well simplified and expounded. Have you done one on Institutional Economics and Alfred Marshall?

@SwatiPrasad0925 3 жыл бұрын

The best explanation ever! Thank you!!

@janesele8653 3 жыл бұрын

God bless you, I really enjoyed watching you and I understood it . Thank you so much

@kristenscanlon3914 3 жыл бұрын

Thank u so much for this video! You explained things so well!

@polypoly7966 3 жыл бұрын

Very persuasive. The simple angled line of other explanations is replaced by the kinks and Keynesian zone. Deficit spending to the rescue. So far so good....but how do we get the stimulus reversed without causing another slump? Your video neatly made the point for rescue spending, but when do we tax to cancel the new fiat dollars? Greatly enjoyed the lesson.

@mamadasdrotaz 5 жыл бұрын

Question: In the classical model is the AS curve for the short or long run ?

@hakeemkazni4241 3 жыл бұрын

On point. Thats a 60 page textbook right there in 13 minutes.

@amandaromero7573 5 жыл бұрын

Thank you! This was very helpful!

@kaiyunng1057 4 жыл бұрын

Amazing explanation, it helps a lot, thanks!

@regianealvesdbj 3 жыл бұрын

Thank you so much for this lesson. It helped me a lot

@tlee5284 6 жыл бұрын

Thanks man , this is just one of the greatest

@YouWillLoveEconomics 6 жыл бұрын

Awesome! Glad it was helpful. Thanks for the feedback!

@b-io 5 жыл бұрын

Very nice and concise! Thank you!

@dgfcl56ify 3 жыл бұрын

thank you SO MUCH! Super helpful, I actually enjoyed economics for once, haha!

@hanaadil8924 5 жыл бұрын

Thank you, very helpful video!

@jakkulapraveen611 3 жыл бұрын

Nice presentation and explanation.....thank you

@tapipayang933 5 жыл бұрын

Thanks a lot.Though I had to decrease the playback speed to .75x in order to think and understand what you were saying. 😂 Your video editing was very good and helpful too.💗 Subscribed to your channel. Keep up the good work.

@nadaimran521 3 жыл бұрын

Can relate

@lindachinenyenwafamilusi6787 5 жыл бұрын

Well explained! Thank you

@toxicmaniax5719 3 жыл бұрын

Watching this b4 exam tomorrow

@zebrapurple13 3 жыл бұрын

“Landlord's right has its origin in robbery. The landlords, like all other men, love to reap where they never sowed, and demand a rent for even the natural produce of the earth" - Adam Smith

@imnotgeorge5490 Жыл бұрын

Here's another good one from Mr. Smith: "The proposal of any new law or regulation of commerce which comes from this order, ought always to be listened to with great precaution, and ought never to be adopted till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention. It comes from an order of men, whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even to oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it." Chapter XI, Part III, Conclusion of the Chapter, p. 292 (in my copy)

@florenceledesma1629 5 жыл бұрын

Thank you for this very helpful video.

@robinmanley9946 2 жыл бұрын

Thanks for the clear explaining 😊

@darshitagarwal3850 4 жыл бұрын

The video is really helpful, thank you.

@21dolphin123 2 жыл бұрын

Fantastic, this guys a Proffesional.

@fatoskryeziu6801 5 жыл бұрын

Thank you, sir, thank you!

@busingyenamara5620 2 жыл бұрын

Thank you.you're heaven sent 🥺

@arunanitha7424 3 жыл бұрын

Thank you sir. It was held full.

@tzutzu6455 6 жыл бұрын

THANK YOU YOU EXPLAINED IT BETTER THAN MY TEACHER!

@YouWillLoveEconomics 6 жыл бұрын

Awesome! Glad it was helpful. Thanks for the feedback!

@monalizasee1645 4 жыл бұрын

Thanks for explaining it well 😊

@S3rvOnpb 4 жыл бұрын

I only read 2 out of the 9 macrobook and you helped me in my paper with 13 mins. Lol

@annameigirl 6 жыл бұрын

this is fantastic thank you so much

@YouWillLoveEconomics 6 жыл бұрын

Thank you!

@bensumner5653 4 жыл бұрын

Great video, thank you.

@curtisw187 6 жыл бұрын

Thanks so much, very clear and helpful

@YouWillLoveEconomics 6 жыл бұрын

Awesome! Glad it was helpful. Thanks for the feedback!

@sabinef2872 6 жыл бұрын

Thanks. Your video was great and very helpful.

@YouWillLoveEconomics 6 жыл бұрын

Awesome! Glad it was helpful. Thanks for the feedback!

@abhisekmishra2817 2 жыл бұрын

Hello Sir, I wanted to know what other theories are there apart from these ? Basically what different schools of thoughts? Thank you

@Baqiabdulaal 3 жыл бұрын

Clear explanation

@mmetally 4 жыл бұрын

Great Video..thanks man!

@bonkchoy7936 2 жыл бұрын

fantastic video thank you so much for your effort

@thabisomokhosoa 2 жыл бұрын

Absolute gems here man

@basiaklos6925 6 жыл бұрын

Thank you! So helpful!

@YouWillLoveEconomics 6 жыл бұрын

Awesome! Glad it was helpful. Thanks for the feedback!

@wajidkarimkhan9717 4 жыл бұрын

Sir you are phenomenal

@umarfarooqmulla9016 2 жыл бұрын

thank you sir ....it helped me a lot ....!!!!

@arthurntembula 5 жыл бұрын

Thanks. it was so so helpful.

@idealjyo6671 Жыл бұрын

He summarised a 95 pages chapter for me, thanks 🙏

@edfl4913 Жыл бұрын

Great video and explanation!

@samriddhmangotra 4 жыл бұрын

Thanks...excellent video mate..

@papunsahu6519 4 жыл бұрын

Sir your video is just amazing ,,,,,tq sir

@RupJyotiGeoRJ 5 жыл бұрын

Outline Keynes criticism of the classical full employment equilibrium? ?

@alexdaniel7137 3 жыл бұрын

i must love economics you did it.i know you should make me great again am from tanzania

@maitreediksharout9788 2 жыл бұрын

Hey nice video! do u have notes on this topic? it would be really helpful!!

@sid1680 2 жыл бұрын

The Classical theory, although based on the laissez-faire principle, does have a role for Government. Oversee monetary supply and ensure it is proportionate to growth in output. Agree the economy entered the Keynesian range during the depression. However, the cause was the failure to increase the monetary supply. It resulted in banks and businesses going bust, and concomitant unemployment. The Classical Theory would have worked quite well if only the monetary supply had been increased in the period of monetary contraction that brought on the depression. In the end, Government did step in, a little too late though, with monetary expansion (the same kind of response that could have been provided earlier). In essence, the laissez-faire principle works well. It was Government action of not increasing the monetary supply that brought on the depression.

@imnotgeorge5490 Жыл бұрын

Try reading "The Great Crash, 1929" by John Kenneth Galbraith, "The Myth of a Rational Market" by Justin Fox, or "Lords of Finance: The Bankers Who Broke the World" by Liaquat Ahamed for a deeper, and more correct view of how The Great Depression occurred. A slavish adherence to Classical economics (aka neoliberal, neoclassical, and the Austrian school) was the cause, not the cure.

@imnotgeorge5490 Жыл бұрын

P.S. There are many more I could recommend since I've been exploring the subject of macroeconomics for the last 12+ years. No I'm not an economist, nor do I pretend to be but I am well read in the subject, with some economics education.

@froggy1854 2 жыл бұрын

thank you so much this really helped me !

@warisch8046 5 жыл бұрын

interesting,and helpful👍👍👍

@heathersockrider5428 3 жыл бұрын

Well done. I hope it is okay for me to share this with friends, as a tool, so they understand my viewpoint.

@omkumar4717 2 жыл бұрын

it is very goog and conceptual video. liked it

@madportuguese2006 3 жыл бұрын

A very interesting and helpfull explanation

@EwertonSilveiraAuckland 2 жыл бұрын

Great, perferct ... Thank you

@kofiadjei-danso5486 4 жыл бұрын

U Soo superb, really love d way u lecture 😘

@gabrielyeboah9177 2 жыл бұрын

This is a great presentation

@larissasastevens2456 5 жыл бұрын

love this video!!!

@ShivamKumar-yo8gi 6 жыл бұрын

It was all great! Thanks!

@YouWillLoveEconomics 6 жыл бұрын

Thanks so much! I appreciate the support!

@limasunepozukum7508 6 жыл бұрын

very eductional, helped me a lot. thank u

@YouWillLoveEconomics 6 жыл бұрын

Thanks so much! I appreciate the support!, and I'm happy it was helpful!

@candaceb2470 Жыл бұрын

you made this so plain and simple thank you! i wish you were my professor lol

@toseeornot2see 2 жыл бұрын

To me, it seems that in a lot of these theories, homogeneity exists to a great degree. Humans all respond to change in a "unified" or "same" way. Also, all these theories were formulated before modern computers, AI and cellphones and blockchain so many different technologies. Keynes and Freidman may never have imagined a decentralised crypto currency and it's implications for society.