Deflation despite increases in money supply | Inflation | Finance u0026 Capital Markets | Khan Academy

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Information Deflation despite increases in money supply | Inflation | Finance u0026 Capital Markets | Khan Academy

Title	:	Deflation despite increases in money supply \| Inflation \| Finance u0026 Capital Markets \| Khan Academy
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Frames Deflation despite increases in money supply | Inflation | Finance u0026 Capital Markets | Khan Academy

Description Deflation despite increases in money supply | Inflation | Finance u0026 Capital Markets | Khan Academy

Comments Deflation despite increases in money supply | Inflation | Finance u0026 Capital Markets | Khan Academy

This does not make sense
Comment from : Muhammad M

Fundamental cripto economic😄
Comment from : roy wimar

Japan
Comment from : julikei

This is wildly inaccurate
Comment from : GankMan

Wow I think this is happening in 2021 Bank deposits are high and yet few borrowers In spite of the helicopter money from the government, people are hoarding cash because confidence is low We all know that some businesses are not coming back and yet with all the printing people are expecting inflation, thus, they hold onto cash/assets May be we will experience deflation in the near so distance future
Comment from : Simone

Inflation and deflation are justice for central planners arbitrarily manipulating the most important economic tool, interest rates or rather, our time
Comment from : Sam Steers

Right now, money supply increased, but so too unemployment aka cheap labour Also demand is sluggish extremely except food items So how will it be in the coming days regarding commodity price, interest rate, debt situation globally?
Comment from : Mohammad Ullah

Hey Sal, don't know if you know it, but the QTM stayed behind the 2008 crisis
Comment from : Emmanuel Tsallis

So the entire defationary cycle, at its core, is nothing more than the product of a belief And so too an expansionary credit cycle and booming economy brbrThe money and FOPs are there, people just don't want to deploy them or trade brIt seems like things would be better if people could make direct barter deals between each other Or large, simultaneous promises between multiple people
Comment from : alo2acs

Quantity x velocity drives prices
Comment from : Ron Villejo

This is my biggest turn off of Keynesian economics They think they understand the public response to monetary policy
Comment from : PillarOfSalt

The comments here make me laugh
Comment from : jim napa

The real question is, why people are pessimistic
Comment from : madass888

This example illustrates: deflation in accepted exchange value, but the value of gold it self has not gone down at all since confidence in its acceptance as an exchange token has not gone down at all As you alluded to confidence in a currency/money is what determines its purchasing power/value So what is keeping people confident in the US Dollar is beyond me We should all stack out gold and silver since this rarely loses purchasing power
Comment from : B Charron

People don't bury money in the ground, they look for a return on their investment IN GOOD TIMES, PRICES SHOULD GO DOWN because more things are produced In bad times, less things are produced, so prices go up AND IN THE LONG RUN, PRICES SHOULD GO DOWN, as we get better at making things Of course we haven't seen the benefits of falling prices because the Fed prints too much money and causes inflation The inflation tax steals value from your bank account without you knowing it
Comment from : John Galt

@rmstorms I thought you were talking about political parties for some reason
Comment from : mrhnm

@mrhnm Did you bother to watch the video? There are only 2 parties
Comment from : rmstorms

@rmstorms Yep, silver compensates for the inflation of the fiat system Because it is actually something as opposed to magic money "There are only 2 parties" What pray tell are you talking about?
Comment from : mrhnm

@mrhnm And that is why the first act of Congress was to define the metal weight of a dollar in silver and gold Silver is real money It's value is the result of effort In the situation described in this video, gold wouldn't necessarily have value There are only 2 parties
Comment from : rmstorms

@rmstorms No I turn all of my money into goods, instead of putting it in a savings account I go down and buy silver
Comment from : mrhnm

Well, as I'm sure you know Sal, this is a controversial area I suppose I agree that you can *temporarily* have deflation and an increasing money supply at the same time, but IN THE LONG RUN, there will always be rampant inflation after everyone regains their optimism That inflation will be at whatever level is necessary to reflect the "new total quantity" of money in the system What you have really explained here, Sal, is how the market can be temporarily distorted
Comment from : scwallac

@NotTheLaw You mean the ORIGINAL definitions? Like deflation means decrease in money supply, not falling prices
Comment from : BarrySlisk

@SPQRomantic Treat them like you would a creationist
Comment from : Tyrannosaurus Rex

@rmstorms The point in this example is that the money supply increases, not by what means it increases or what kind of money, gold, paper, bitcoins they use
Comment from : SalsaTiger83

The problem with your explaination is, gold requires effort to mine and refine Why would the characters place any value in gold? The current deflation we are experiencing is limited to certain assets such as housing that were wildly overvalued I'm not seeing any fuel or food deflation Money only has real value if its creation is a result of human effort If money is simply printed, it's fucking stealing, PERIOD! Would anyone accept FRNs if we weren't forced to by law?
Comment from : rmstorms