| Title | : | Pt2. Does an increase in Money Supply always cause inflation? |
| Lasting | : | 8.55 |
| Date of publication | : | |
| Views | : | 14 rb |
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Brilliant Comment from : ahappyimago |
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Excellent videothx for sharingbrLook into liquidity trap plznow in US EU and Japanmoney supply increase but low inflationbrTwo reasonsthe money isn't circulating where it is trapped in the banking system2nd we managed to export our inflation to China and IndiabrbrNote how educationand healthcarehas a lot if inflationwithout themwe would've been in a deflationary spiralbrbrI think that designed this way by Fed and Governmentbecause the whole economy contains so many zombie banks and corporations Comment from : Abu al-Sous |
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all that assuming the increase in demand? Comment from : Josseline Gonzalez |
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هنا بعد منظور 5 Comment from : Osama AZ |
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amazing thanks brother Comment from : محب مصر |
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A much easier explanation is when there's low velocity of money and an increasing money supply, prices will remain steady This is because the injection of additional money in the economy is bnot being spent/b on goods and services, meaning that the supply of those goods and services are not being reduced and their prices remain near market equilibrium (assuming the market is stable and already reached equilibrium during the time new money is being poured into the economy) brbrIf there's a high velocity of money, there's alot spending happening and injections of money into the economy will reduce the supply of goods and services, increase the demand for those same products and drive prices upward (inflationary) brbrSo the best answer is bit depends on whether or not the velocity of money is high or low/b Comment from : TheChillStreamerLive |
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nice video Author try to explain if money supply increase It increase the price level in the economy good job Comment from : Nandakumar Janakiraman |
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The flaw is that when the leader invests in the factory it will cause additional demand and inflation Comment from : The Peter Dislike Show |
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Are you a Khanacademy copycat? Shame on You! Comment from : The Peter Dislike Show |
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Money itself couldn't increase the number of final products I think that in your example only unused capacity of labour or invention of a new technology could do itWhen all people in the village work in bakery they couldn't work on the new construction unless their productivity double Comment from : Sampicek |
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