The Difference Between Fiscal and Monetary Policy

Thank you! My professor is so bad, I can hardly pay attention, and I don't even understand her lectures. This is so much better, and I learned so much more!

Galbraith was a spineless pawn and puppet of Johnson and the Big Government politicians. Powell is beginning to remind me of Galbraith. Idiots. Money functions within a set of rules that do not change, and it isn't theirs.

Great video, easy to understand 👍🏼🙏

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Prof Dave teaching me calculus and economics

You need to heavily edit or update this video as much of your monetary policy info is far out of date. The Federal reserve doesn't really do OMO anymore since 2008. Massive QE at the time really reduced the effects of OMO. Also, the required reserve ratio for banks has been 0% since March 2020. The new tools the Fed uses today are interest on excess reserves (IOER), reverse repurchase agreements, and forward guidance. Much of this is actually done with the goal of affect the demand for money rather than the supply.

Check out the most recent (9th edition) of the Hubbard O'Brien Macroeconomics textbook, as they have a decent explanation of it all.

Thank you so much the 7 minute video is more helpful than the 2 hours lecture 😔💗

Now do bitcoin ☺️

I find the monetary part confusing

5:00

the Feds reduced Required Reserves to 0% March 2020....and anyhow the Feds only influence a SMALL FRACTION of total dollars.....not EuroDollars, not dollars <created> any/every time anybody or bank <makes a loan>....and besides, only BIG BANKs get to borrow from the Feds......and they DONT very much anymore....they use REPO mechanisms to raise cash....
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The Federal Reserve Board reduced banking reserve requirements to zero in March 2020. Since that time, banks in the United States have not been required to actually hold any depositor money in the bank, making a flawed system — fractional reserve banking —""

Also, politicians in general are trying to reward different voting groups as the middle class

Well explained. Thanks

Dave you give great tutorials
Could you try to explain to the average person the fractional money reserve system
That was the straw that broke the camel's back when it came to the American revolution Once they took our sovereign money away and forced us to use their money we knew we'd always be in debt the rest of our lives That's how we ended up with Can you deal and getting the United States of America
Original sin slavery still suffer from that sin to this day

Hi Dave. I check out your stuff all the time. I am very entertained by your attacks on pseudoscience. Keep it up.

won’t matter til they legalize it

bro please, on an unrelated note, please debunk the silva method right now, im not seeing many debunking videos on the silva method so please do a thorough debunking 🥺

i like that song lol

Just to add to the video, the Required Reserve Ratio plays a much bigger role than mentioned here. The $9000 that is lent out will eventually be deposited in the bank again, if somebody does not stuff it in an old mattress. That money can then be used as reserve for a new loan again. Effectively this means that the $10,000 deposit will allow the bank to lend out $100,000 in loans. That is, the bank is creating money: the amount of money is circulation is multiplied by 10.

Fun fact for Friedman fans: during Reagan's presidency governmental budget deficits where higher than during Carter's. Other Big Spenders were George Bush Jun. and Donald the Clown.

👍👏

I have no idea what any of this means. I am never going to use this information.
I still enjoy it though. Weird.

You should not be promoting the false idea that a government operates just like a household.

"For this reason, the Fed yields tremendous power over..."

LOL. You mean "the Fed wields tremendous power". The Fed isn't in the habit of yielding power to anybody. ;-)

Federal reserve isn't even government. It's the most corrupt institution there is. FIAT money is a scam.

Professor can you do a video on trickle down economics and if it is bad or good? HAPPY HOLIDAYS

Thanks

Perfect for me interested and learning about subjects such as politics and economics where this matters.

Hello flat earth destroyer!!

Would you PLEASE run for congress? Our deficit spending is unsustainable. Congress doesn’t seem to have a clue (or give a ____) about what causes inflation.

Cool!

Nice

Cue Zeitgeist flashbacks

Thank you!

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おはようございます

Thx for this!