I sincerely love this man

using econplusdal parents as Application in the exam.. lol

Thank you so much! The good news is I have now finished my Alevel economics & thanks to you & Your videos, I understand the economy very well relatively to last year when I was new to Economics, and had idea about your videoes. The bad news is that I'm gonna miss the sound of your voice everyday, I used to listen to your tutorials literally everday because I was doing all four units. Thanks so much. You have definitely made a positive impact in my academic life and I really want you to know that. Sharing one's knowledge is the most selfless act of all.

@melonheadcsgo9814

4 жыл бұрын

Ms Mode just shut the fuck up

@ta7174

4 жыл бұрын

A Neek From Alabama just unnecessary 🙄

@trrift3781

3 жыл бұрын

@@melonheadcsgo9814 wtf is wrong with u

@leonardowilhelmdicaprio999

3 жыл бұрын

@Gordon Rayan Here come the bloody spambots....

This guy is fully saving me in every year of my degree, better than the lecturers 😂😂

@TaariqSiddik

4 жыл бұрын

@@melonheadcsgo9814 condom*

The great thing about your videos is the passion you show. I can tell you genuinely enjoy teaching economics and the subject as a whole shown by your enthusiasm. I learn a lot from these so thanks.

a king truly, been watching your videos since I was in Year 10, and still continue to come back to them all the way in my Masters degree, I and so many are grateful for your teaching Dal, thank you

I have watched 3 other vids (from white guys), read from the notes and the A Level book. But nobody can explain better than you sir.

@seadrown6252

17 күн бұрын

White guys catching strays 😢

This is the best economics channel

Very very helpful video. Thanks for educating the finance lovers all around the globe

Quick, and straight to the point. Dal you are awesome!

Fantastic! This is a difficult concept to understand. You made it very easy and logical! Much better than most videos out there! Just missed out on the FX side of this - the downside is that the currency depreciates relative to other currencies (in short run however with an unknown effect for the long run). So controversial.

@melonheadcsgo9814

4 жыл бұрын

Fuck

@danielhearne-potton7710

3 жыл бұрын

Why is that controversial? The UK is in a structural deficit on the current account, so a depreciation should help to boost their competitiveness and hence increase export revenue.

@Anonymous-xr8hx

3 жыл бұрын

@@danielhearne-potton7710 he was referring to the unknown effect in the long-run. If it in fact appreciates the exchange rate in the long run it will result in a further worsening of the current account deficit.

A very helpful video for my A2 Economics exam for AQA. Given that its in the specification and its not mentioned in Nelson thornes, this was an invaluable video. THANK YOU sir.... p.s if you could make a video on the EU (last chapter for Macro) and also on globalisation & international trade, that would be very helpful for all students taking the exam.

@EconplusDal

9 жыл бұрын

aman singh These are coming. Stay tuned!

@amankataria1997

9 жыл бұрын

Thanks sir. Once again, I appreciate all your time and effort!

you’re literally THE BEST!!!!

Thank you very much for the comprehensive video about QE. I think that one of the causes of the failure of conventional monetary policies in the aftermath of the Global Financial Crisis ( Great Recession, "sub-prime".... you name it) was mostly due to the constrains of the ZLB (zero lower bound) plus the other problems you mentioned. I would add also the "balance sheet channel" not just for firms (as you mentioned) but also for banks that can be better off in term of a reduction of non-performing loans and costs related to the latter. Nevertheless, i would also mention the negative effects of unconventional tools if there is a different sensitivity of deposit and lending rates ( both should decrease) that somehow can reduce bank net interest margins (because of the "stickiness" of deposits). If there is a contraction of net interest margins banks profitability fall, capital is eroded and the ability of banks to lend reduced. Hence, we are again as at the beginning!!! Waiting a new video about NIRP!! Thanks

bruh you the best, really needed this. your efforts are extremely appreciated!

Hey, thanks for all the videos. How many more videos are there to come in your A2 Macroeconomic Playlist?

@othman.aliraqe8874

4 жыл бұрын

صضضصرنتزتلناكججححججضضضففضضصقفعخجخنلهختهضضفسبلهحججحاضضضضضضيبيبمتتتداانححححجضضضصصجججضضيلياتلناججطلبتنيتتلالتنضصحججججضرومحرزبرلسضضبلتتحححجججججججججججصصصيللاببلاتمحشضضضضعححججحججججخشضيضضضضضضضضللااض

@othman.aliraqe8874

4 жыл бұрын

ضضضصقغقشقهخحضضيبضضبياتخحيسلسغضضضضطببهخانلنلتلخا

Thanks for the explanation. Confusing subject, helped a lot!

Lmaoooo I watched this video 1 hour before my exam and it came up in a 12 marker this year 💀💀💀💀 biggest snipe in history istg

Hi there, thanks for the videos, very helpful. Was wondering if you are planning to make one on globalisation? thanks

@amankataria1997

9 жыл бұрын

Nish Patel I would recommend this Sir

Well explained, Thanks!

hi thank you for such a helpful video, but i have to ask is the only difference between quantitative easing and normal open market operations the fact that the govt creates the electronic money first? Bit confused since I thought buying bonds was how govts stimulate the economy anyway thanks

@RoyZorba

2 жыл бұрын

The central bank creates electronic money not the government. Government can't create money so they ask central bank to lend the money in exchange of government bonds, central bank buys government bonds and gives the newly created money to the government. The central bank and government are two separate entities working together in an economy. QE is a vast topic so it's okay be confused many times.

Thank you very much for this explanation.

Hi, i got a question on how QE causes economic growth for a 15 marker but as im writing all the point i think i will make form into 1 and so i end up about 2 paragraphs short, any tips?

This is Brilliant !!! Damn !!!

@melonheadcsgo9814

4 жыл бұрын

My reaction to the Armenian genocide

In Dal I trust

This is seriously helpful.

Brilliant explanation as usual. Thank you

@RezurrectedNuke

9 жыл бұрын

Sean McCarthy It is a great video isnt it?

@RezurrectedNuke

9 жыл бұрын

Sean McCarthy Wait hang on, are you the Sean McCarthy

@RezurrectedNuke

9 жыл бұрын

Sean McCarthy I dont believe it, it cant be you.. Hows life treating you in the kalahari desert

@RezurrectedNuke

9 жыл бұрын

Sean McCarthy Sean McCarthy, My name is Peter Ruwanda Maganda, I would deeply appreciate a response from you and would like to catch up with you as soon as possible. Merci bon Avoir

How does QE's efficacy change when interest rates approach zero?

Don’t banks pay the coupon rate to their bond holders? Hence wouldn’t a decrease in yield for corporate bonds not affect their borrowing?

Thanks, good explanation

@melonheadcsgo9814

4 жыл бұрын

philip stallwood okay Philip okay okay yeah okay 👌

How does this differ from open market operations?

Its all about reducing risk, but through QE you are devaluing your base currency, how do you undo it? or is it a one way road?

@rubsr4176

3 жыл бұрын

It is. You cant "undo" it altho governments try to increase tariffs and take money supply away from the economy when inflation hits. These are just prolonging the hyper inflation thats caused by this induced increase in price levels by the government.

Thank you so much!

Top guy.

anyone else got exam on 20th may 2019??????????????

@gregfoster5922

5 жыл бұрын

yep

@yeetothehaw2658

5 жыл бұрын

mines on the 22nd tho. good luck to yall!

@adityamisra8869

5 жыл бұрын

Yee to the Haw how what exam Board are you!

@yeetothehaw2658

5 жыл бұрын

im taking CIE haha. what about you?

Who gets the interests on those bonds that Central Bank buys as part of injecting money? Sure it will be in their credit balance and they could buy more bonds with that. Does this implies Central bank will always have surplus assets in comparison to Government and Private sector? Does the design of Central banking system requires a single top most creditor with infinite credit?

Top G !!

You’re my hero

how does a decrease in the yield of corporate bonds create a decrease in general interest rates?

@Fudgey1010

8 жыл бұрын

Banks often raise finance by issuing corporate bonds, and the yield reflects essentially the interest rate on the bond - how much they have to pay back in addition to the amount they've borrowed. The yield falling means the amount they have to pay back has gone down, so it's cheaper for them to raise finance and then lend it out. If it's cheaper for them to get finance, they're gonna be more willing to then lend it out to consumers at a lower price (almost like the standard argument that they can charge a lower price but maintain profit margins because costs have fallen). That's my understanding anywayz

@samuela775

Жыл бұрын

@@Fudgey1010 love u man

An excellent explanation, thank you so much!

Are these videos geared towards A level economics?

@nayanpatel8106

3 жыл бұрын

yes

When the government is buying government bonds from financial institutes, does this mean the government buys government bonds the it previously sold, from these financial institutes?

@rubsr4176

3 жыл бұрын

Yes. Government, in times of boom where the market price is inflating and bullish, tries to cut down money supply to stabilise it, so it issues bonds and takes money away from the economy. In times of depression, inorder to increase demand and start production, the government tries to increase money supply by taking those bonds back and providing liquid money for it.

MO knows wagwan.

Good lecturer. God bless you

if the yield of corporate bonds decreases, how does this make borrowing cheaper? thank you

@nathanpeart626

3 жыл бұрын

Because the decrease in the bonds yield means that the issuer doesn’t have to pay back as much interest to the lender, meaning the government can borrow more for less

To what extent can we use QE as a criticism of Friedman's LRPC? He states that any inflation would be caused by an increase in the money supply (QE in this instance), but as we have seen in Europe and in the US, inflation rates have remained minimal despite this.

@edwardbond5192

9 жыл бұрын

Ardi Janjeva All the QE money went into the stock/ housing market, hence why there is inflation in those markets. So technically QE has inflated prices

can someone clear up point five a bit confused on why the interest rates fall

@danielhearne-potton7710

3 жыл бұрын

Probably a bit late, but I think it's because the yield of corporate bonds falls, meaning that the high-street banks can easily sell these bonds (since the yield/amount they pay back falls, so the cost of repaying the holder of the bond falls). This means banks can increase their liquidity by reselling the corporate bonds that they held, so they have more money (which is liquid). If the high street banks have more spare money, they are more willing to loan out money, which means they'll reduce their interest rates.

@RoyZorba

2 жыл бұрын

The financial institutions (banks) buy so many corporate bonds when the central bank gives them newly created electronic money, buying excessive corporate bonds leads to higher bond prices and lower yields (corporates bonds are higher in demand). The financial institutions (bond holder) buy corporate bonds at lower price and sell it at higher price, making huge profits (raise finance). By raising large amount of finance (cash) means banks have more money available to lend the customers which leads to lower interest rates/ reduces the cost (interest) of borrowing. I tried to keep it short. 😂

the absolute fucking GOAT

🐐🐐🐐

THE GOAT

4 weeks till my exams and I still don’t understand this 😭

@jolt09l

5 жыл бұрын

bro i feel you

@jason-os3jg

5 жыл бұрын

2 weeks@@jolt09l

@deristickhd6313

5 жыл бұрын

2 hours

@vdmur7952

3 жыл бұрын

how

@dhruvshah7112

3 жыл бұрын

@@deristickhd6313 How did it go? Mine is in less than 24 hours.

Econplus undefeated, even in 2021

Well done. Slowly getting round to QE, though I tend to go with the more pessimistic evaluation of Economics Foundation. Electronic money conjured out of thin air and given to banksters. Close on 0.5 trillion, much better giving it straight to firms that actually produce goods and services rather than waste it on these quasi-parasites.

how can we assume that there would be greater demand for corporate bonds when banks decide to invest in them

@melonheadcsgo9814

4 жыл бұрын

Chris John okay so basically erm to do this you need to erm shut the fuck up, draw the graph of sin(x)

@rubsr4176

3 жыл бұрын

theres intrinsically demand for government bonds or gilt edged securities because 1) theyre secure as theyre issued by the government and low risk 2)they offer tax concessions/rebates. 3)Unlike the capital market which deals with long term financial assets, money market -mostly dominated by government- deals with short term asset making it highly liquifiable. These features along with the bond's supply price and prospective yield over time creates demand for it.

@RoyZorba

2 жыл бұрын

The banks buy so many corporate bonds with the newly created money circulated to them by the central bank. Buying excessive corporate bonds increases the demand of bonds which means increase in bond's price, later bank sell this bonds at higher price and make profits or If I say in the words of economics "raise finance to lend the customers".

love u bro

Legend

anyone in covid time?

Only works in the long run if the u.s. is the only country in the world. Already there is much talk about creating a new reserve currency and let's not forget Bitcoin :)))

if only i watched this video before today

I found this confusing. It is my understanding the government issues government bonds - not financial institutions - they would only issue corporate bonds, and it is only the buying of corporate bonds by the government that injects money into the economy. A company buying a government bond is lending money to the government i.e. taking money out of the economy. what am i missing?

@Anonymous-xr8hx

3 жыл бұрын

The government is essentially purchasing its own government bonds, increasing their price and thus disincentivising firms and households from purchasing them.

@RoyZorba

2 жыл бұрын

The central bank and government are two separate entities working together. Government ask the central bank to create money to expand or save the economy. Central bank lends the money to government by buying government bonds at cheaper rate through circulating the newly created electronic money to many financial institutions (government/corporate banks). Financial institutions creates new mutual funds, securities, investment schemes inside them contains government bonds, government ETFs and also corporate bonds, corporate stocks altogether. Financial institutions are connected with central bank and through financial institutions, central bank buys the government bonds. This way newly created money then goes to the government and also to the corporates listed in stock market and also to the consumers. The government uses newly created money run government institutions, railways, schools etc. Corporates uses the newly created money to expand or save their business from collapse and consumers get those money from financial institutions by borrowing it at lower interest rates. Hence, it's the central bank that injects the money into the economy by buying a lot of government bonds.

@john-blair

2 жыл бұрын

@@RoyZorba It is not clear from your answer - does the Central Bank buy government bonds, or does it circulate the newly created money to financial institutions? Also, does the central bank buy the government bonds from the government or from other financial institutions who have previously bought government bonds, and will now have the new money to invest elsewhere? Thanks.

@RoyZorba

2 жыл бұрын

​@@john-blair I'm happy to answer again, QE is really vast and deep. I will dig a little deeper. - Central bank is the father of all the financial institutions, the relation of central bank and financial institutions is same as the relation of a father to his children. Every financial institutions operates under the supervision of central bank. Financial institutions are not independent entities. Financial institutions can be owned by corporates or government but each and every financial institutions in a country is operated by the central banks. The employees of the financial institutions are hired and salaried by the corporates/government, small functions like account openings, fund transfers are carried out by financial institutions. Operations like lending money and selling mutual funds/investment schemes are carried out under the supervision of central bank. The employee of the financial institutions are only allowed to lend money if the central bank has given them a green signal. The central bank is the trunk, financial institutions are the branches and the leaves are the consumers in an economy. Financial institutions doesn't have any rights to print or create new money, they run on the profits made from their customers. Central bank doesn't rely on profits because central bank is the creator of all the money in an economy, only the central bank holds the right to make new money. Government bonds are just pieces of paper just like currency notes, these government bonds can only be created by government, they can create bonds without any limit like the central bank can create money without any limits. When there is an economic downturn or a need to expand the economy. 1) The government requests the central bank to save/expand the economy and only the central bank can save or expand the economy. The government offers their bonds (pieces of paper) to central bank, these bonds have no value (0). The central bank has the right to refuse the government but If central bank agree to save/expand the economy. Than 2) The central bank take these government bonds which have 0 value, creates new money electronically and circulate these newly created electronic money along with government bonds (value=0) to all the financial institutions in the country. The financial institutions get two things, the new electronic money and the government bonds(0). Than 3) The central bank orders every financial institutions to create new mutual funds/investment schemes and put these government bonds inside those newly created mutual funds/investment schemes along with the corporate bonds, equities to balance the portfolio. The financial institutions follow the orders of the central bank and create hybrid mutual funds/investment schemes. Than 4) The central bank tells financial institutions to buy those mutual funds/investment schemes with the new money. The financial institutions buys their own newly created mutual funds/investment schemes with the new money circulated to them by central bank. Than 5) The new money goes inside these mutual funds/investment schemes. But inside these mutual funds/investment schemes contains government bonds and so the newly created money went to the government through bonds. The government bonds which previously had 0 value is worth some value now because it is bought by financial institutions by newly created money of the central bank. 6) The new money goes to the government and other corporates through mutual funds, the government will now use these new money to give salaries to government employees and also will use the money to run schools, public transport, government factories, mines etc. The corporate will use the new money to save/expand their business, pay salaries to the employees and will create new goods and services for the consumers. 7) The central bank buys government bonds indirectly but never hold it. The short time holder of the government bonds are financial institutions. These financial institution will sell these mutual funds/investment schemes to their customers and then customers will become the final holder of the government bonds. 8) The last holder of the government bonds becomes the public who buy these mutual funds/investment schemes from the financial institutions. The financial institutions raise finance by selling mutual funds/investment schemes to the public and use the raised finance to lend the other customers. 9) The financial institutions lend the same money they got by selling the mutual funds/investment schemes, they try to overcome the inequality under the supervision of the central bank. Government/corporate use the new money to pay salaries to employees (public) and carry on other functions. The new money reaches to everyone through different ways. 10) In the end if the economy does well, the central bank request back the money from all the financial institutions, the financial institutions transfer the money electronically to the central bank and then central bank deletes the money they created electronically in the beginning. In this way central bank balances the inflation and deflation. In general, while explaining in short sentences we say "central bank buy government bonds" but central bank never buy or hold the bond, they give newly created money to government and corporates indirectly through financial institutions in exchange of bonds given to the public in the end. Central bank never seek to make profit by making investment because they are the creator of the currency, they can create cash as much as they want. Central bank always try to balance the economy by regulating all the financial institutions.

@john-blair

2 жыл бұрын

@@RoyZorba Thanks for making the effort to explain further. Much appreciated.

I can sense the saltiness at 2:12-2:40, if only his parents got the loan...

love dat babes

save my life

@melonheadcsgo9814

4 жыл бұрын

杜欣骋 save my dead wife from my necrophiliac fetish

0.38 is happening now due to coronavirus

LeT's TalK qE

my daarg

@melonheadcsgo9814

4 жыл бұрын

Your names gooner do you know what that is

Love you daddy dal

i love you

Lol

Why can't governments print as much money as they want? Check out the comprehensive data backed analysis on the issue here- dsaikrishna.wordpress.com/2020/04/14/what-is-helicopter-money-and-quantitative-easing-will-they-help-the-economy/