All language subtitles for 1_fodase111asdasdsad

becomes very expensive for
consumers and everyone in that

that as well because standard
of living and everything else

actually no there's no movement
in the economy and that's

there any was there any
movement in the economy no

steady rate but also see a
steady rate of inflation. If

you see no inflation it means
the economy is just stand

that's exactly what happened
money supply increase but was

domestic country. But anyways
guys take care and I hope you

there wasn't so if you want to
successfully you know grow your

activity they want more people
to have cash in their hands so

they want the economy you know
they want more economic

economy but in a stable way you
need to increase supply by a

that money supply would grow
because banks central banks

obviously a bad sign and if you
lot remember back in 2008

we're getting into a recession
or something you would expect

still must understand
particularly when correlating

more money. Who's got more
money supply in their economy

still. If you see too much
obviously you need to control

growth as well and it's it's
kind of an indication of where

and that's exactly what want
but sometimes when that isn't

handled too well inflation
doesn't rise meaning there is

and what's what is that doing
to them? So the main takeaway

they can invest here they can
invest there so the economy is

you are in the business cycle
so for example when we're when

from this lesson is understand
what M2 money supply is M two

well. However this does not
always occur. And that's one

all the countries together. You
must understand who's printing

they're not exactly correlated
as you may expect. However we

expectations are a lot lower
for money supply to increase

thing you need to take into
consideration. Sometimes

year. Now what you would expect
is that inflation would rise as

That's a 9. 7% growth of money
supply in that year. Usually

that much. And of course it
grew to 8. 2 trillion that

more stimulated then of course
businesses thrive they open up

countries and you know
exogenous factors in comparing

expect money supply the more
money you've got circulating

at two thousand and eight I'll
just highlight it over here.

investments that people have
got on at the moment is simply

the economy now just a note
about money supply from what we

understand so far about
inflation you might expect that

We've got between the years of
2006 all the way to two

thousand and 10. Now clearly
you can see when the crisis

always the case as you can see
from this data data right here.

just a note before we move on
money supply does not does not

just think of it as physical
cash that's circulating around

the economy the more inflation
there is however that's not

the higher M2 supply especially
during an expansion stage of

happened M two money supply
grew substantially. If you look

within an economy the higher
amount of inflation you can see

economy what it's doing to
inflation because as you can

it is simply the supply of cash
so it doesn't include any

count investments such as
capital into the stock market

okay what impact does money
supply have on the current

particularly by economists
because they have to understand

looked at piece of data
released weekly and monthly by

the Fed. So you can tell this
is very closely watched

market shares. Now Mone and M
two are the most commonly

Mone what is that? It covers M
zero plus demand deposits and

because M 0 is part of Mone
plus savings deposits and money

travelers checks. Then M2,
which is the main one that we

usually look at. It covers both
Mone and of course M zero

on the third section I believe
it is So now when it comes to

coins and notes circulating
around the economy and also

central banks reserves. Um as
you may know central banks they

monetary base. That's simply
physical currency which means

with the Fed's fund rate which
we're going to be getting into

or capital that they keep live
with them. This has a lot to do

have to keep a minimum sort of
quota of central bank reserves

circulation within a country. A
country's money supply has a

do they all work together? So
for money supply. In economics

profile. Particularly in to
interest rates, inflation and

you know you hear money supply,
inflation, interest rates, how

the business cycle. So all
three of these components are

money supply. You've got Mzero
which is also known as the

very closely interlinked. Now
there are different types of

fundamentals these are the
types of things that you hear

Yes guys, welcome to the first
video of the second section of

significant effect on a
country's macroeconomic

the money supply refers to all
the cash and currency in

learn anything from this
lesson.

most of you have heard and you
know when you're getting into

fundamentals. Um so in this
lesson we're going to be

looking at money supply. Now
this is a term that probably