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Does money really make the world go round? Or at least control macroeconomics in the 21st century?
Helpful Websites
www.reffonomics.com Read the Story of Pine Gulch
http://www.youtube.com/watch?v=w2tKg3E53DM An interesting overview of moneyKey Concepts-
Savings
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planned investment
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actual investment
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nominal interest rates
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real interest rates
- Bond Prices and Interest Rates- https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/ap-financial-sector/financial-assets-ap/v/introduction-to-bonds
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assets- for you, banks and the Federal Reserve
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liabilities- for you, banks and the Federal Reserve
- bank balance sheets- https://www.youtube.com/watch?v=aZA6nLTHQuE
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t- charts
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M1= cash and checkable deposits
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M2= M1 + near money (savings, stocks, cds, physical assets, etc)
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liquidity
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purposes of money: medium of exchange, store of value, unit of accounting (know examples)
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Bank Reserves- required and excess
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monetary base= currency in circulation + reserves held by banks
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money supply= currency in circulation + checkable bank depsoits
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money multiplier- ratio of the money supply to the monetary base
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mm formula = 1/rrr * change in monetary base (see above)
- MV= PQ Velocity of Money Theory- https://www.wheresgeorge.com/
Graphs/ Formulas-
Loanable Funds (Credit) Market Graph
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Money Market Graph
Helpful Websites:The story of Slim http://www.reffonomics.com/TRB/INPROGRESS/MacroeconomicsMoney.html
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Last Modified on March 25, 2020