The Great Recession

♪ [music] ♪ [Tyler] A lot of ink already has been spilt discussing the Great Recession of 2008. And a full examination of that would require a lot more than just one video. So today, I’m going to limit our discussion to just one central theme of the crisis, namely financial intermediation. Let’s say you’re buying a home […]

What Do Banks Do?

♪ [music] ♪ [Alex] Some people want to save and invest; others want to borrow. Sometimes these people — they interact directly — say, you borrow money from your parents. But typically, savers and borrowers — they don’t even know one another. So a variety of institutions act as bridges to link savers to borrowers. In this video, […]

The Money Multiplier

♪ [music] ♪ [Alex] Now that we know how money is defined, we’ll learn how banks can affect the supply of money through fractional reserve banking. Let’s imagine that you graduate from college and your grandma gives you $1,000 in cash — that she’s been saving under her mattress since the 1970s. And you deposit this cash in […]

Causes of Inflation

♪ [music] ♪ [Alex] Today, we’re going to explain the primary cause of inflation. And we’re going to do so using the quantity theory of money. Let’s start by rewriting our equation slightly. We’ll divide both sides by Y, so we get this. What this equation tells us is that if prices are changing, there are three possible […]

What are Central Banks? Central Bank Roles and Objectives Explained

Hiya! Welcome to this AccoFina tutorial. This is a quick economics tutorial. We’re going to talk about, ‘What are central banks?’ and, ‘What are their tasks and objectives?’ Okay.. So an introduction to the central banks. Now central banks are banks and monetary authorities, for national governments and nations. So while most private banks service individuals or corporations, […]

Game of Theories: The Monetarists

♪ [music] ♪ – [Tyler] Monetarism is another framework for thinking about business cycles. Nobel laureate Milton Friedman of the University of Chicago — he was the most famous proponent of monetarism. And, as the name suggests, monetarism emphasizes the importance of the money supply, and it emphasizes the decisions central banks make about what to do with […]

What causes an economic recession? – Richard Coffin

For millennia, the people of Britain had been using bronze to make tools and jewelry, and as a currency for trade. But around 800 BCE, that began to change: the value of bronze declined, causing social upheaval and an economic crisis— what we would call a recession today. What causes recessions? This question has long been the subject […]

Unraveling the Central Banks’ Misbehavior (w/ Jim Grant & Bill Fleckenstein)

Jim Grant: Hello. I’m Jim Grant. I am with my friend, Bill Fleckenstein. And let me just say that I met Bill during the panic of 1907. And we have known each other so long, we could almost—Bill Fleckenstein: Almost finish each others’ sentences. JG: It’s true. I think, actually, we got to know each other during the […]