Thank You! I had a hard time understanding the derivation of LM from the textbook. You're a life saver!

Thank you very much, I spent 5 hours trying to figure it out, most of the videos were way to complicated. Your is very good!

Amazing, just amazing! Great work, sir!

That's a pretty simplified explanation !! Thanks:)

@anunnah You are a bank and suddenly people begin to withdraw more money because they need to do more transactions. You need to supply these people with more money and to get hold of this money you have to convince the participants who hold passive money to make that money available to you. To do that you sell them bonds at a lower price which increase the rate of return that is the interest rate. And in this process passive balances are converted into active balances.

now this is what called ,, short and sweet :)

Incredible explanations, thank you

thsnk you sir for a simple straight forward explanation. I love your accent too.

So much better than how the teachers explained it. Cheers!

Thank you sir! You saved my life.

great help!!! thank you sir, you really are great!

Thks alot .very simple and clear explanations

Thanks for the videos!

Thank you, great videos! And of course the presenter is right at 1:50; interest rates will increase as a reaction to a higher level of transactions and with no change in the money supply. AKA "Higher economic activity puts pressure on the interest rate." In deriving the LM curve we don't assume the reserve bank changing monetary policy.

Amazing, thanks so much sir X

Wow very good. Thanks a lot!

Thank you. Great

good job professor

@anunnah What is meant here is that if you hold bonds and you then need money, to get this money you will sell your bonds - it is not the central bank that sells bonds - it is the participants. What happens here is that passive balances are now switch into active balances. And since the central bank has not changed their behaviour the amountof money is till the same and the supply curve unchanged.

@anunnah It is not the central bank that sold the bonds but the financial particpants that need money to finance transactions. The MS curve only shifts when the central bank changes its behaviour. It is an exogenous variable.

Is it right in saying the money exists in the system already, locked up in investment funds, and then released when demand increases for money, so the money is essentially lent out at increasing levels of interest until Md=Ms. Exogenous shift is related to releasing more money around the system.

Thank you sir..😋

Thank you sir :D

i = 1/h(kY - M/P) where i - interest rate, h - interest sensitivity of the demand for money, k - income sensitivity of demand for money, m - nominal money supply, p - price level

thanks！！

thank you

@lostmy1 you are right sir

good video but you are using same notation for level of output(Y) and Income(Y) so now I am confused.

Thanks

See the clip on the shift of the LM curve.

hello sir sir do you have explanation to thsi derivation . The explanation that can be written in the exam.

@anunnah Mayby he should have said: "To get hold of money bonds will be sold"

why is y1 both the income level and the output level?

@lostmy1 What way would the IS-LM and CC-LM curve behave when reserves are increased? And what way will IS-LM and CC-LM curve behave when credit supply is increased?

Learning more from free videos than lecturers you're paying for: £9,000 a year

I am not sure what is the CC-LM curve. An increase in reserves by bank is a decrease in the supply of money and the LM cure will shift left - at every interest rate there is a lower supply of money. An increase in credit supply is an increase in the amount of money and the LM curve shifts to the right.

"Demond for money" sounds a lot like "bond"

@Mirroredsmoke

6 жыл бұрын

Glad i was not the only one that thought this lol

Keeping everything aside that marker sound is getting on my nerves IT IS CRAZY

Of course he has an accent to make my life much more difficult lol

@leah38521

6 жыл бұрын

his accent doesn't deter understanding at all