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Money supply: M0, M1, and M2 | The monetary system | Macroeconomics | Khan Academy

Frames Money supply: M0, M1, and M2 | The monetary system | Macroeconomics | Khan Academy

Description Money supply: M0, M1, and M2 | The monetary system | Macroeconomics | Khan Academy

Comments Money supply: M0, M1, and M2 | The monetary system | Macroeconomics | Khan Academy

I don't get it: Why isn't the $ used to write checks diminishing in bank 1, when bank1 lends to bank2? Isn't this double counting? Comment from : @favoriteEuropean

This is not how our banking system works Commercial Banks make US Dollars when they create give you a private loan So, if I get a mortgage and borrow $100,000 the bank takes my promissory note and labels that an asset of $100,000 and puts it on its balance sheet -- the it creates US Dollars out nothing and puts $100,000 into my checking account FACT is Commercial banks make 85 of money like this and this is how the money gets into the system This is beyond wrong and confusing It is AWFUL Comment from : @19battlehill

Full reserve banking would eliminate bank runs Comment from : @nortonvandepoele2359

wow, the M0-M1-M2 money supplies are a conjugated phenomenon (thank you very much Dan Winter, thank you) Comment from : @samjohnson3124

very interesting to think of Dan Winter's "conjugated charge implosion" in all this, only phi based energy harmonics are capable of constructively "nesting ontop of each other" without destroying anything/any-value, like russian matrioshka dolls nest within each other non-destructively here it seems the money supplies are nesting ontop of each other non-destructively, but in a way modern manufacturing is a conjugated nesting of efforts too, and indeed the independent manufactureres of components can improve their own portions of what they contribute, adding value to the overall product, even if the larger-host product hasnt made as many progressive value additions as a minor independent manufacturerer has to the product Comment from : @samjohnson3124

curious, I'm beginning to think this is a nested energy system, like the chakra system only down in the red chakra are things "manifest" like cash is, but as you go up in the chakras, they become more abstract and less physically explicit-limited Comment from : @samjohnson3124

good explanation Comment from : @mdhasnain_3764

Why were the savings accounts counted 2x since 1USD went from bank A to bank B? Comment from : @alexmijareslagunero

I don't like the way he explains things, he makes them a bit complicated Comment from : @usama5263

Thank you Comment from : @docreynolds4697

ibrooo9 Comment from : @zackatin6048

This dude is a legend He helped me get through engineering school Comment from : @monkeydog8681

This sounds like marksman lol Comment from : @nicob6481

I had a question, who creates the security in the first place for the central bank to purchase? Comment from : @vivekmshl

Informative video, however the initial debt that was printed would’ve required interest, which also would’ve been created out of thin air, thus increasing the existing debt (currency) in circulation Comment from : @evanwilliamson3602

This completely neglects that central banking employs double-entry accounting for an elastic supply It looks like I have to go back to central bank papers to learn the real definitions of the monetary supply figures Comment from : @Austin1990

Thank you for providing me the basic concepts of money and financial definitions Comment from : @ThomasLickert

This seems like a scam Comment from : @Miguel-fv9cm

man, this makes no absolute sense in my head without accidentally double counting Comment from : @nootnoot1878

What is the best site to follow up M2 broad money supply? Comment from : @langa1533

Let me guess, M3 is Rich People Money, Real Estate and Art and Collectibles Comment from : @bargdaffy1535

Great explanation I like how the colors separate entities Comment from : @jonnysantos5074

i owe you my degree, Comment from : @egwaluesimuwilfred8946

It’s time to change your career Comment from : @alphaomega5923

<3 Comment from : @emisociedadanonima

This man is a gift from god Comment from : @christianrusso128

ty Comment from : @teomaky

Thanks Sir Comment from : @bilawalminhas7689

This video is brilliant, thanks Comment from : @michealmonroe4264

Really digging Ari Shaffir's voice over lol Comment from : @aarontuplin

I don't understand why M1 or M2 are ever more than M0 because not more than one person can have any of those $4 originally "printed" It just feels like for M1 and M2 we're just double-counting dollarscan someone help me out here? Is the nature of lending the missing part of the equation, and if so, the banks cannot lend more than the money they have, which still makes me think there's double-counting Comment from : @bradleycarr91

RIP US Economy Comment from : @nagasako7

The amount this guy has helped my life is immeasurable Comment from : @michaelscott9266

ThxbrbrGreat Comment from : @robertcalamusso4218

So, what happens now that the m2 is no longer different to m1, because is so liquid that there’s no sense to differentiate from one-another? Comment from : @caricus2079

Pardon me for asking Why does the Fed need multiple "private bank" accounts? Why not just one? What is the whole purpose? Comment from : @zhongrui5144

If you have a tough time getting rid of $1 billion worth of Pez dispensers you clearly need to start networking and meet the right people Comment from : @blgdinger3

The amount of topics and subjects that I have learned from this man😊🙏🏽 Comment from : @belisebibi2399

Question- If you withdraw Rs 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will bebrbr(a) To reduce it by Rs 1,00,000br(b) To increase it by Rs 1,00,000br(c) To increase it by more than Rs 1,00,000br(d) To leave it unchangedbrbrAnswer: (d) To leave it unchangedbrbrCan someone explain this to me Comment from : @Ayush_Patel_9

How can i find out what the money supply was in 1971? Comment from : @jamesbowman1767

Buy Bitcoin Comment from : @guyvanburen

Money printer goes BRR Comment from : @jackcullen69

Thank for your sharing It's informative Comment from : @valerieyang6281

I'm pretty sure the banks can lend much more than 90 in the Netherlands it's around 96 Comment from : @semkjaer3581

Does security mean bonds and stocks? Comment from : @kirthiganair2554

Wow, you explain complex things in an easy manner Thank you, much appreciated Comment from : @sandysutb

I don't get it, why central bank buys government bond instead of directly lending money to commercial banks? Comment from : @crptc5707

Too complicated way of explaining Comment from : @willinoysitorus1509

Sorry this is not well explained At all Comment from : @toriIshie

And now the required reserve banks are allowed to have is 0 Comment from : @theyluvloki

What you describe is still a ponzi scheme Comment from : @rubenboyd3249

Thanks Comment from : @avemaria4788

What a pyramid scheme Comment from : @theamericanmoderate

You probably know everything! Comment from : @chinodomcharles-beke2136

I think the simpler way to say this would be that banks can create credit up to M times their deposits Comment from : @defaultuser9423

Can you make a video about M3? It seems like a big part of the money supply: uploadwikimediaorg/wikipedia/commons/thumb/9/95/Components_of_the_United_States_money_supply2svg/1280px-Components_of_the_United_States_money_supply2svgpng Comment from : @masoodsattari2

Who owns the security the central bank purchased in step 1? Comment from : @masoodsattari2

after i watch this vid, can’t understand Comment from : @ss4102

3:30 I can't imagine someone borrowing money from one bank to deposit the money in another bank Sure way to lose money from interest difference Comment from : @encodersofia

Enough Thank yous, but what does it mean when banks "write checks"?? Doesn't matter, beautiful drawings though Comment from : @et7992

What are securities? Comment from : @trilify8385

thank you Sal, love it Comment from : @台湾省省长蔡英文

y u so smart! Comment from : @Flor3ncia11

Thanks for video:)brI'v watched previous video but I still don't understandbrPrevious video says there's some money ON DEMAND,thus PB(Private Bank)can't loan out these money So,how can PB can loan out money from checking account?br(the money in this account is on demand be able to withdraw at anytime)brI know Fractional reserve banking,but that is the Money No1 in the PB#1,am I right? Comment from : @TheIntroducemyself

I didn't get u Comment from : @PoojaSingh-su7lg

So that means Central Bank buys things with the money that they can print without doing anything How exactly? Comment from : @khalifa-141

watching you write and draw you little illustrations is rather painful This video could be a 3 mins at most if you did that beforehand Comment from : @bignigel9015

at 7:13 when he is masuring checkable deposits dosen't he do doube counthing on one dolar of PB#2 which has been alrady counted as a one dolar in the pocked? Comment from : @burakcebeci5725

I am studying to take an economics test to teach the subject in Georgia and this video was very helpful in understanding this concept thank you very much Comment from : @symbiotesam3562

You do not know what you're talking, you're just regurgitating myths and lies Comment from : @dwaindibley4137

Are physical assets money? You can sell them Comment from : @mfabanwy

Cheques Comment from : @camfunme

was M3 gold? Comment from : @Canadian789119

awesome Comment from : @durgeshprasher5410

Are you counting debt cards as checks as well? Comment from : @itscarlM

which multiplier creats more M1, M2 or M3? and how? give simple answer plz Comment from : @ikmofficial1

Stick to physics Comment from : @bodhibunker521

What is the best english search engine in the world? Comment from : @bodhibunker521

This does ot explain the difference between the M0 and the amount of cash usd around the world the M0 in 2005 was 800 billion but there is 135 paper money in total it does not explain the difference between these two Comment from : @erikaahlstrom6543

All this is absolute nonsense very confusing at that Comment from : @se7ensnakes

Very confusing and bunch a nonsense On a 1 to 10 reserve ratio banks can lend nine dollars for ever $1 they hold in reserves (deposits) The $reserve depends upon their total depositors Depositors lend money to banks Physical cash equates $1 to $1 bank reserves which is withdraw from a local bank The central bank only ensures that banks cash other banks checks Comment from : @tkkt3605

I absolutely hate the way you repeat yourself so much for the most irrelevant things 'private bank number 2' every fucking video so annoying Comment from : @AlamedanBreezyRep

Around 6:45, should you perhaps say "checkable reserves?"  I see a lot more "reserves" than just $2 worth, unless i misunderstand how you are defining "reserves" Comment from : @bbeaum1

what si pez dipensers Comment from : @tanshikohli6730

It was a real great helpthank u :-) Comment from : @kittenkits

wt are u saying at 0:48? pezzz dispensers? wzatt? Comment from : @jmalvika

There is fallacy in your reasoning: 1Money has no intrinsic value 2The value of money lies with its exchangeability for goods and services 3If any body other than State has a power to increase money supplies it is a theft 4Whoever increases the money supplies it gets goods and services for literally nothing 4Any country can control its money supplies without borrowing money from anybody, because if anybody should be allowed to get goods and services for nothing it should be the State Comment from : @MajikSo

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