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How Central Banks Control the Money Supply With Interest Rates

Money u0026 Macro 178 views

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I just uploaded the next video in this series, which is about quantitative easing: youtube/ZbqtpKk6iC8
Comment from : @MoneyMacro

Interest rates don’t control money supply I don’t care if I’m paying 12 on my money if I’m making a 5 or 6 return and if at interest I can’t make a return I won’t borrow It’s the ability to profit that matters
Comment from : @gordonmichaels600

It's a scam
Comment from : @adamphillips01

Thank you Very well explained
Comment from : @aliciarealegeno1315

elon musk?
Comment from : @nailil5722

So are we just all duped by statistical manipulation into accepting that there simply must be no contingent opportunities that offer better means of earning?
Comment from : @TheWorldBelow360

I am (ir)rationnally angry that cemtral banks attempt to cause unemployment to 'help' the economy
Comment from : @TurielD

Amazing content 👍👍
Comment from : @luyombojonathan6688

Central banks do not “control” money supply Central banks can influence money supply
Comment from : @thePot_

I don't want banks or governments having control over my money Bitcoin is the future, we don't need banks anymore
Comment from : @supersneakusa4492

The interest rate for money cannot, I repeat cannot, change the quantity of money At the core, it is simple math The interest rate is a dependent variable, it cannot be changed independently The exchange of current money for future money dictates the rate of interest
Comment from : @MengerMania

Eeeee villllll
Comment from : @nonexistent5030

Your channel's contents are so goodbrI've able to understand economics easy❤❤
Comment from : @AnemoiaGuy

Thank you
Comment from : @namelessbecky

BANK OF AMERICANSHAR MIN AUNG(CEO)
Comment from : @KyalTagon-nl7cb

very informative Thanks
Comment from : @muborizmirzoshoev4127

Actually, money is a matter of trades The central bank is the middle man who exchanges apples for lumber from the producer of apples to the producer of wood that doesnt need apples The central bank exchanges his apples for money so that the producer of lumber can get a saw from the person who doesnt need apples or lumber Not literally but the idea is right if you understand correctly The central bank exchanges goods for money from in compatible sellers so they have a common currency They make a profit for there service As do the producers of apples, lumber & saws
Comment from : @djexclusivee

It’s amazing that you made a video on a topic and didn’t explain it
Comment from : @hosoiarchives4858

Well explained Thank you
Comment from : @iosefaandrews2351

So, reserves are basically in the form of currency notes, right? I am feeling a bit thrown off by the "money that only banks can use" expression and not sure how to interpret that
Comment from : @amitsondhi333

The Fed Funds Rate and the Discount Rate are pretty blunt tools in all honesty brThey may make credit cheaper by setting a lower floor for interest rates, but that won’t necessarily translate into a great demand for loans
Comment from : @camerondye6108

It’s nice to see more and more economists taking the engineering approach to economics I’ve always liked the work of people like Anwar Shaikh and Stephen Keen They look at how the economy works in the real world, not how it “should” work brbrThis channel does a great job explaining these complex topics in an entertaining and easy to digest way Keep up the great work!
Comment from : @TheCommonS3Nse

Thanks for the video
Comment from : @muskduh

Time is Godly power that is why some watch is really powerful But real and fake make difference
Comment from : @ericpham5198

In fact if increase interest encourage investment and lending more but if the people use loan to produce create jobs but if they only borrow small to spend daily needs the it destroy future because no one can pay back
Comment from : @ericpham5198

The bank are not problem mostly but some hidden power print more money of some small countries exchange for us dollars and ride so the question is should a single currency help better for everyone
Comment from : @ericpham5198

Well explained
Comment from : @ausforaus7617

Great video but you lost me for showing Prague on "Underperforming economy" 😀
Comment from :

superb video very very clearly explained !!
Comment from : @ps2050

Hi Joeri Great content! I understand you had to skip some things to make an approachable summary, but I think a follow-up video describing central bank Open Market Operations enwikipediaorg/wiki/Open_market_operation is needed Especially contrasting OMO versus central bank rates and versus QE
Comment from : @werdna2231

I would say the Federal reserve in the United States is not controlled the money very well 30 trillion dollars plus in debt?
Comment from : @SabbathSOG

Yes Finally people can be quiet about the bogus quantity theory of money in your other videos
Comment from : @jackhopewell1745

So how do Central Banks control or stimulate an economy if they no longer do it by regulating reserve requirements? Unless I misunderstood your video, if there is demand for credit, banks will create credit The check or limitation to unlimited bank loans are the depositors to the banks fearing credit quality and bank runs?
Comment from : @lakeguy65616

Ty
Comment from : @Silvertestrun

Why are the interventions of Central Banks not reduced to a computer algorithm?
Comment from : @Simpaulme

Thanks for the great videos, Joeri Good coverage, without too much focus on non-traditional ideologies regarding monetary policy I'll be recommending some of your videos to my secondary/university econ students
Comment from : @zakaryjaynicholls9867

thank you so much, this video helped me to do my take home exam
Comment from : @elifaslan9674

Why don't the take money out of circulation that would Stop inflation
Comment from : @PShawtx

Thank you 🙏🏻
Comment from : @markrafferty992

Interest rates are at zero
Comment from : @NewlyDan

I don't understand how can banks hold too much reserves and why would they want to keep their reserves at the central bank
Comment from : @dontyoufuckinguwume8201

Is that Ed Begley Jr at 8:12?
Comment from : @xxTSpawn

I love it very clean on Monetary Policy
Comment from : @arthursmallz8723

I love the way you teach
Comment from : @godwinnumaworseh4242

JESUS, I CAN'T BELEIVE I FOUND THIS CHANNEL! I HAVE TO SAY, I'VE YOUTUBED SOME VERY SPECIFIC AND INTRICATE ECONOMIC CONCEPTS THAT SHOULD'VE PRODUCED YOUR CHANNEL ON THE OTHER END OF THE SEARCH, BUT IT NEVER DID I LITERALLY FOUND THIS CHANNEL BY ACCIDENT AND THAT IS CONCERNING
Comment from : @customersupport9055

i’m ready to buy a notebook and just take notes off of your videos dude lol
Comment from : @Bob-fj7lr

Brilliant summary Hope more people view these, as there is a lack of understanding of macroeconomics
Comment from : @thusspokezarathustra

this knowledge for trading forex right ?
Comment from : @didikpurwanto1125

This guy looks like Elon Musk
Comment from : @josephmontante3772

This channel is UNBEATABLE!!! Thank you so much for your hard work!
Comment from : @robertzell8670

That is exactly the explanation I was looking for Thanks!!
Comment from : @valentinviola8814

when you say the central banks raise or lower interest rates - are you talking about the interest rate at which they lend out money, or the interest rate they offer for money to be stored with them, or both? Are the interest rates the same This is confusing for me, as the flat term 'interest rate' is always used, but would they offer the same interest rate for borrowing and storing?
Comment from : @ifwecouldvote

thank you so much for this video! I'm struggling in econ class but this really helped
Comment from : @chlsey3372

The purpose of the commercial banks is to try to lower the interest rate downwards because high interest rates only bring in risky borrowers ??brIn an environment of lower interest rates is it convenient for commercial banks to lend according to what you say or have I misunderstood??brbrThanks In Advance
Comment from : @ErezLeviStocks

good video but missed such an opportunity to talk about 'the interest rate fallacy' Low interest rates are indicative of tight monetary conditions and high interest rates of loose monetary conditions Interest rates are POSITIVELY correlated with economic growth
Comment from : @johnlong123long

Not all central banks influence monetary policies via interest rates For example, countries like Singapore, control money supply managing exchange rates That's as far as I know Will you be able to examine deeper monetary policies via the exchange rate, how it works?
Comment from : @pjs20thetube

This video is replete with the term reserves Can you please clarify what does this term reserves mean? And the video is good
Comment from : @Atrayeeroy2618

Fun fact : that huge building looked like a PS5
Comment from : @mohamedmoustafa2699

The only thing they control is perception, which makes us extra blind to the cliff we are running over
Comment from : @jacobklein8156

Do all central banks around the world seem to follow the same principles involving the relationship between unemployment and interest rates? Curious if there are 'experiments' in other countries testing the boundaries of this theory I imagine that like so many other policy concerns there are going to be idiosyncracies that don't generalize well to all countries, however
Comment from : @dankwarmouse6248

3:28 Banks have the ability to create money through loans (to some extent), so why increase lending to the general economy in the case of having excess reserves? I don't recall if it was said explicitly in these videos, but others that I've heard discuss this (and go against the MMM) indicate that banks don't lend from reserves Without that being explicitly said, I would think that money creation for loans would imply this as well What am I missing?
Comment from : @dillingersiadak8667

I would like to see this guy play Chair the Fed game, and explain the reasoning behind his choices That should be interesting
Comment from : @MultiSciGeek

What's the money supply?brbrAlan Greenspan said central bankers can't control the money supply because they can't even define or measure it brbrThey don't even bother measuring M3 because they don't know if they''re double counting and overstating the money supplybrbrThe relationship between "money supply" and inflationary has totally broken down so they're reduced to manipulating public psychology
Comment from : @hemiedwards217

Very informative and well explained Content! Greetings from Germany!
Comment from : @christiansinger2497

Can you do a video on Tether? And stable coins in general
Comment from : @sgill4833

Awesome video content, keep up the good work!
Comment from : @Lex3000ification

Inflation has occurred It's just in the prices of capital goods, instead of consumer goods People should look at the S&P500, instead of the CPI This way the economy can, in theory at least, grow forever, but at the cost of eventually making capital goods unaffordable
Comment from : @Tuppoo94

You know for a dutchman you sure do use a lot of Rands 🤔
Comment from : @saintmichael5253

Ive heard that as populations increases, wages drop dramatically Is this true?
Comment from : @fierypickles4450

Thanks! Super content, super ilustrative take my like dear sir!
Comment from : @PrometeoLF

Does this mean that countries with very high inflation, no or negative economic growth, high interest rates and rather high unemployment are bizarre case studies (or failed economies)? I don't really expect a full answer here, although I do hope you do a video about Argentina It's more of a comment to boost the algorithm and let you know I appreciate your work, in depth analysis of a topic, almost full lectures, not short and only entertaining videos Good job! I hope the channel grows!
Comment from : @lucalazcano5238

very clear about the banking cartel
Comment from : @kenzong8427

But why wouldn't the Commercial Bank set it's own interest rate, since when it makes a loan, it creates that money by typing it into the Lender's Account? I thought that the Commercial Bank does not borrow money from the Central Bank before it lends?
Comment from : @pebblepod30

Just came across your channel, for someone who wants to learn about macroeconomics and how does various factors effect money flow this is simply too good, please continue the good work and thank you
Comment from : @sukritprakash4672

Very good research! No open questions Its all explained in a full circle and i do understand it, at least in theory I really appreciate it, thanks
Comment from : @Brandon-oo3if

Very clear and insightful explanation!
Comment from : @la-po7yt

No modern customer ever checks a bank's reserves That's what people would do if banks had no backstop
Comment from : @arguewithmepodcast

So governments have to decide between:brbrRaising Interest Rates: which will increase unemployment, thus annoying the local citizens (who vote for the government) but will attract foreign investors brbrORbrbrDecreasing Interest Rates: Stimulating economy, decreasing unemployment but scare off foreign investors (due to risk that inflation will erode value of currency)
Comment from : @cf3433