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monetary policy analysis of increased money supply coupled with fixed exchange rate and imperfect capital mobility 

          monetary policy analysis of increased money supply coupled with fixed exchange rate and imperfect capital mobility

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Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
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monetary policy analysis of increased money supply coupled with fixed exchange rate and imperfect capital mobility
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Transcript

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00:01 Discuss money supply and inappropriate government policies as cause of economic fluctuations.
00:06 Money supply has huge impacts on the economy of a country.
00:10 Any changes in the money supply leads to fluctuations within the economy.
00:14 When more amounts of money are inserted into the economy, the law of demand leads to lower interest rates that also lower the price of borrowing.
00:22 When borrowing becomes easier, the rate of consumption and lending tends to go up.
00:27 Therefore, an increase in money supply leads to higher consumption and investment that, further leads to increase aggregate demand...
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