Home page

Money supply: M0, M1, and M2 | The monetary system | Macroeconomics | Khan Academy

Frames Money supply: M0, M1, and M2 | The monetary system | Macroeconomics | Khan Academy

Description Money supply: M0, M1, and M2 | The monetary system | Macroeconomics | Khan Academy

Comments Money supply: M0, M1, and M2 | The monetary system | Macroeconomics | Khan Academy

This sounds like marksman lol Comment from : Nico B

I had a question, who creates the security in the first place for the central bank to purchase? Comment from : Vivek Mishal

Informative video, however the initial debt that was printed would’ve required interest, which also would’ve been created out of thin air, thus increasing the existing debt (currency) in circulation Comment from : Evan Williamson

This completely neglects that central banking employs double-entry accounting for an elastic supply It looks like I have to go back to central bank papers to learn the real definitions of the monetary supply figures Comment from : Austin P

Thank you for providing me the basic concepts of money and financial definitions Comment from : Thomas Lickert

This seems like a scam Comment from : Miguel

man, this makes no absolute sense in my head without accidentally double counting Comment from : Noot Noot

fast forward to 2022 where no reserve is required anymore Everything is going to crash, Just a matter of time Comment from : Striking Media LLC

What is the best site to follow up M2 broad money supply? Comment from : Langa

Let me guess, M3 is Rich People Money, Real Estate and Art and Collectibles Comment from : Bargdaffy 153

Great explanation I like how the colors separate entities Comment from : Santos Santos

i owe you my degree, Comment from : egwalu esimu wilfred

It’s time to change your career Comment from : Alpha Omega

<3 Comment from : aemi_sa

This man is a gift from god Comment from : Christian Russo

ty Comment from : Diego Godoy Martínez

Thanks Sir Comment from : Bilawal Minhas

so this is all free? I love this guy Comment from : Tom Lindsay

This video is brilliant, thanks Comment from : Micheal Monroe

Really digging Ari Shaffir's voice over lol Comment from : Aaron Tuplin

I don't understand why M1 or M2 are ever more than M0 because not more than one person can have any of those $4 originally "printed" It just feels like for M1 and M2 we're just double-counting dollarscan someone help me out here? Is the nature of lending the missing part of the equation, and if so, the banks cannot lend more than the money they have, which still makes me think there's double-counting Comment from : Bradley Carr

RIP US Economy Comment from : Ironicalballs

The amount this guy has helped my life is immeasurable Comment from : Michael Scott

ThxbrbrGreat Comment from : Robert Calamusso

So, what happens now that the m2 is no longer different to m1, because is so liquid that there’s no sense to differentiate from one-another? Comment from : Caricus

Pardon me for asking Why does the Fed need multiple "private bank" accounts? Why not just one? What is the whole purpose? Comment from : zhong rui

If you have a tough time getting rid of $1 billion worth of Pez dispensers you clearly need to start networking and meet the right people Comment from : blgdinger3

The amount of topics and subjects that I have learned from this man😊🙏🏽 Comment from : Belisé Bibi

Question- If you withdraw Rs 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will bebrbr(a) To reduce it by Rs 1,00,000br(b) To increase it by Rs 1,00,000br(c) To increase it by more than Rs 1,00,000br(d) To leave it unchangedbrbrAnswer: (d) To leave it unchangedbrbrCan someone explain this to me Comment from : Ayush Patel

How can i find out what the money supply was in 1971? Comment from : James Bowman

Buy Bitcoin Comment from : Guy VanBuren

Money printer goes BRR Comment from : jackcullen69

Thank for your sharing It's informative Comment from : Erie’s corner

I'm pretty sure the banks can lend much more than 90 in the Netherlands it's around 96 Comment from : Sem Kjaer

Does security mean bonds and stocks? Comment from : Kirthiga Nair

Wow, you explain complex things in an easy manner Thank you, much appreciated Comment from : Sandy *

I don't get it, why central bank buys government bond instead of directly lending money to commercial banks? Comment from : crptc

Too complicated way of explaining Comment from : Willinoy Sitorus

Sorry this is not well explained At all Comment from : Tori I

And now the required reserve banks are allowed to have is 0 Comment from : LoKi

What you describe is still a ponzi scheme Comment from : Ruben Boyd

Thanks Comment from : Ave Maria

What a pyramid scheme Comment from : The American Moderate

You probably know everything! Comment from : Chinodom Charles-Beke

I think the simpler way to say this would be that banks can create credit up to M times their deposits Comment from : Default User94

Can you make a video about M3? It seems like a big part of the money supply: uploadwikimediaorg/wikipedia/commons/thumb/9/95/Components_of_the_United_States_money_supply2svg/1280px-Components_of_the_United_States_money_supply2svgpng Comment from : Masood Sattari

Who owns the security the central bank purchased in step 1? Comment from : Masood Sattari

after i watch this vid, can’t understand Comment from : SS

3:30 I can't imagine someone borrowing money from one bank to deposit the money in another bank Sure way to lose money from interest difference Comment from : encodersofia

Enough Thank yous, but what does it mean when banks "write checks"?? Doesn't matter, beautiful drawings though Comment from : E T

You could have explained it much more concisely in a couple of minutes Comment from : Max Smith

What are securities? Comment from : Trilify

thank you Sal, love it Comment from : 台湾省省长蔡英文

y u so smart! Comment from : Florencia Munoz

Thanks for video:)brI'v watched previous video but I still don't understandbrPrevious video says there's some money ON DEMAND,thus PB(Private Bank)can't loan out these money So,how can PB can loan out money from checking account?br(the money in this account is on demand be able to withdraw at anytime)brI know Fractional reserve banking,but that is the Money No1 in the PB#1,am I right? Comment from : Saka Huang

I didn't get u Comment from : Pooja Singh

So that means Central Bank buys things with the money that they can print without doing anything How exactly? Comment from : KHALiFA

watching you write and draw you little illustrations is rather painful This video could be a 3 mins at most if you did that beforehand Comment from : Big Nigel

at 7:13 when he is masuring checkable deposits dosen't he do doube counthing on one dolar of PB#2 which has been alrady counted as a one dolar in the pocked? Comment from : Burak Cebeci

I am studying to take an economics test to teach the subject in Georgia and this video was very helpful in understanding this concept thank you very much Comment from : Symbiote Sam

You do not know what you're talking, you're just regurgitating myths and lies Comment from : Dwain Dibley

Are physical assets money? You can sell them Comment from : Michael Fabanwo

Cheques Comment from : camfunme

was M3 gold? Comment from : Jessie A

awesome Comment from : Durgesh Prasher

Are you counting debt cards as checks as well? Comment from : Carl Martin

which multiplier creats more M1, M2 or M3? and how? give simple answer plz Comment from : Irfan Kazim

Stick to physics Comment from : Bodhi Bunker

What is the best english search engine in the world? Comment from : Bodhi Bunker

This does ot explain the difference between the M0 and the amount of cash usd around the world the M0 in 2005 was 800 billion but there is 135 paper money in total it does not explain the difference between these two Comment from : ERIKA AHLSTRÖM

All this is absolute nonsense very confusing at that Comment from : se7ensnakes

Very confusing and bunch a nonsense On a 1 to 10 reserve ratio banks can lend nine dollars for ever $1 they hold in reserves (deposits) The $reserve depends upon their total depositors Depositors lend money to banks Physical cash equates $1 to $1 bank reserves which is withdraw from a local bank The central bank only ensures that banks cash other banks checks Comment from : TK KT

I absolutely hate the way you repeat yourself so much for the most irrelevant things 'private bank number 2' every fucking video so annoying Comment from : AlamedanBreezyRep

Around 6:45, should you perhaps say "checkable reserves?"  I see a lot more "reserves" than just $2 worth, unless i misunderstand how you are defining "reserves" Comment from : Thomas D Pearce

what si pez dipensers Comment from : Tanshi kohli

It was a real great helpthank u :-) Comment from : Hi Harmeet!

wt are u saying at 0:48? pezzz dispensers? wzatt? Comment from : Malvika Jain

There is fallacy in your reasoning: 1Money has no intrinsic value 2The value of money lies with its exchangeability for goods and services 3If any body other than State has a power to increase money supplies it is a theft 4Whoever increases the money supplies it gets goods and services for literally nothing 4Any country can control its money supplies without borrowing money from anybody, because if anybody should be allowed to get goods and services for nothing it should be the State Comment from : MajikSo

amazing video ,thanks a lot Comment from : Gökhan Emre Eren

larry guynot the point 0o Comment from : NPC

Hey guys, you guys should try Firepacom if you want to make money online! I am making over $3,000+ per month! Visit FIREPACOM and start making money now! FIREPACOM Is paying me and my wife $10000 / Month The cause boosts the acid language The ink administers the cruel attack Comment from : Larry Guy

WTF dude? Why don't you do that Stop posting shitty websites on youtube videos Comment from : MultiCiou

Yo, have you considered this plan called the Intellitus Cash System? (do a google search) My coworker says it earns people plenty of money Comment from : jhony patel

What is the benefit to PB#1 of giving the 1$ in savings to another PB(#2)? Comment from : Shawn Andrews

thank you is there a video that covers all mony transaction in one economy ? Comment from : Taha SD

So it seems the security that the central bank bought from the private bank is pretty valuable How did the private bank come into possession of this security? Who did they buy it from? Or did they (private bank) create this security to begin with? and why couldn't just the private bank use the value of that security to divide it up into checking and savings accounts and lend it out themselves without having to sell it to a central bank? It seems the real creators of money is private bank right? Comment from : Racism IS a Disease

So what your saying in the video is that QE3 promise of $40 billion a month is more like $70 billion when it gets into our economy using M1 money supply Very interesting thanks for helping to figure out screwed our dollar has become from the FEDS God bless America!!! Comment from : SequelFinalNight

a bit slow, but very good and informative Comment from : rofsjan

I agree, and what a scary and sad scenario! I think that it can be extrapolated to the global scenario and say that Private Banks control the global money supply Thus, the world "monetary" economy? There's definitely something wrong in the world! Comment from : Balcony Bonsai

Absolutely nothing, which is one of the main critics to the fractional reserve banking system As strange as it may sound, the power of increasing and decreasing the money supply in the economy is in the hands of Private Banks Comment from : Alejandro Andrés Hernández

Related Money supply: M0, M1, and M2 | The monetary system | Macroeconomics | Khan Academy videos

Money supply and demand impacting interest rates | Macroeconomics | Khan Academy РѕС‚ : Khan Academy Download Full Episodes | The Most Watched videos of all time

Money creation in a fractional reserve system | Financial sector | AP Macroeconomics | Khan Academy РѕС‚ : Khan Academy Download Full Episodes | The Most Watched videos of all time

Principles of Macroeconomics 10: The Monetary Base and Money Supply РѕС‚ : Roberto Samaniego Download Full Episodes | The Most Watched videos of all time

Circular flow of income and expenditures | Macroeconomics | Khan Academy РѕС‚ : Khan Academy Download Full Episodes | The Most Watched videos of all time

Commodity money vs. Fiat money | Financial sector | AP Macroeconomics | Khan Academy РѕС‚ : Khan Academy Download Full Episodes | The Most Watched videos of all time

Demand curve for money in the money market | AP Macroeconomics | Khan Academy РѕС‚ : Khan Academy Download Full Episodes | The Most Watched videos of all time

Functions of money | Financial sector | AP Macroeconomics | Khan Academy РѕС‚ : Khan Academy Download Full Episodes | The Most Watched videos of all time

Quantity theory of money | AP Macroeconomics | Khan Academy РѕС‚ : Khan Academy Download Full Episodes | The Most Watched videos of all time

Market equilibrium | Supply, demand, and market equilibrium | Microeconomics | Khan Academy РѕС‚ : Khan Academy Download Full Episodes | The Most Watched videos of all time

Deflation despite increases in money supply | Inflation | Finance u0026 Capital Markets | Khan Academy РѕС‚ : Khan Academy Download Full Episodes | The Most Watched videos of all time