In this video I explain the difference between the money market and the loanable funds market and explain why one of them is labeled nominal interest rate and the other is labeled REAL interest rate.
I also show how both graphs are related to each other and how they can shift in the short run and in the long run. In the bonus round I talk about the natural rate or interest and the Swedish economist Knut Wicksell. Sverige är bäst
Please keep in mind that this video is designed for students that have already learned these concepts and graphs. If it goes over your head, please go back and watch the Macro Unit 4 Summary Video or the videos below.
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Write an article about Money Growth and Inflation- Macro Topic 5.3 in English
I really like your videos ✅♥️
Man Clifford is GOATED. I have a Macro final exam in 15 minutes and he's taught me more about monetary policy than my professor has in an entire semester.
Intro goes hard ngl
ECON 1102
Fabi was here
Nice Video
Studying whole new concept the night before the AP exam! LESGOBB!!!!
Me watching in 2022 and hearing there is no inflation rn thinking he doesnt know yet LOL. Appreciate the videos alot! Helping me so much reviewing for the AP exam right now
6:53 MS increase and ir will decrease, so why supply of loanable funds doesn't decrease?
Great video outlining these two models. I got some great info out of it, and it helps to have someone talented at explaining things clearly because teachers can be confusing at times.
4:30
Greatest of all time, you are doing gods work for the students with bad professors thank you.
Hi Im from the future. And inflation has been the highest in the past 40 years.
REALLY NEEDED THOSE SUBTITLES HEREEE
Lol ap macro tommorow
We love you, Mr. Clifford!
I know this is an old series and all but I just needed to say thank you. You have essentially been my teacher lately, and an amazing one at that.
KING
i have a quiz on this in an hour
1:27
Haubner test tomorrow, and I'm screwed
Quantity Theory of Money and "loanable funds" theory are empirically discredited. Why does anyone still teach them?
Deposits don't create or fund loans; the "supply of loanable funds" (a myth) neither facilitates nor increases bank lending. Banks will lend to creditworthy borrowers, period. If they need additional reserves, the Fed provides them.
Jacob is right about this!: "A lot of these models aren't…kind of…working."
They're not working because they're faulty models. MMT has produced the best analyses.
This difference in Nominal and Real has confused me for a VERY VERY LONG time which my teacher never cares to explain….. Thanks for the explanation!!!
Thank you! You help so many students and even economics teachers.
Thank you! You help so many students and even economics teachers.
2020 BOARD VICTIMS WHERE YOU AT???????
"watch the unit 4 summary video"
Thank you! WIll take AP 2 weeks later
I just don't understand why the formula for nominal interest rates adds in inflation when nominal interest rates don't account for inflation and real interest rates subtract out inflation when real interest rates account for inflation. please help me understand and comment back.
Omg thank you