03/26/2016      UNIT IV: Youtube Videos on Monetary Policy 

https://m.youtube.com/watch?v=YLsrkvHo_HA&feature=results_video&list=PL2CB281D126F65E26&playnext=1

Video 1: I never knew money had as many purposeful functions as it does from buying, to saving, to judging what an item is actually worth. I also feel that there is so much to learn about the concept of money from commodity to representative. Representative through me for a small loop in understanding as it is sort of money that functions as a certain quantity in coin value. While commodity simply means a good that has other purposes while also functioning as money.

https://m.youtube.com/watch?list=PL2CB281D126F65E26&params=OAFIAVgC&v=gzFdeM6lUno&mode=NORMAL

Video 2: This video explored the concept of money market graphs. The vertical axis is the price, as price you pay to get money. The horizontal axis is the quantity money. I found it interesting that Demand will slope down due to a high price - low quantity demand relationship.

https://m.youtube.com/watch?list=PL2CB281D126F65E26&lf=results_video&v=XJFrPI8lLzQ&feature=bf_next

Video 3:  The tools explored in this video was on the FED and manipulation of money supply. Expansionary is used to battle a recession and also known as easy money. Contractionary is used to battle inflation and is also known as hard type money. All falling under when the FED engages in open market operations, you get the FOMC, or the Federal Open Market Committee, who is the piece of the FED entity that makes those decisions.

https://m.youtube.com/watch?lf=results_video&feature=bf_next&v=rdM44CC0ELY&list=PL2CB281D126F65E26

Video 4: This video gave thorough details of the Equation of Exchange, which is MV=PQ.
M = money supply, V = velocity.  (MV) = GDP. Q= total quantity in volume of goods. (PQ)= GDP income where who is eating money changes in M, will impact prices, and changing M if price is stable will effect the quantity.

https://m.youtube.com/watch?feature=bf_next&list=PL2CB281D126F65E26&lf=results_video&v=1tUC59pz95I

Video 5: This video talks about the circulation of money through loans. More or less dealing with how banks create money by offering loans with interest. The formula for the money multiplier is 1/ RR (Reserved Requirements). Then through multiple deposit expansion loans increase .

https://m.youtube.com/watch?list=PL2CB281D126F65E26&params=OAFIAVgI&v=k37Y6BKcpsY&mode=NORMAL

Video 6: This video describes Loanable Funds as well as ties together all of the videos for one final understanding. I found the Fisher Effect the most interesting as it states MV and PQ must be set equal. This sort of declares a 1:1 direct ratio. The increase in the interest rate, ties into the increase in price level, goes back to the Fisher Effect, ties into the equation of exchange, and there you have it .... The key to the connection between all concepts in unit 4.