Hey i am looking at this series for about 4 days and it has been the best series for economics i have ever seen, i am only 12 years old, so sometimes i need my mom to help me, but you are the only one that made me understand all the words u say(well some times not) so KEEP IT UP!!!!!!
The baseline state of a competitive market without monopolies is deflationary. Human curiosity drives technological innovation, enhancing efficiency. This, combined with consumers constantly seeking "more for less" and entrepreneurs striving to stay competitive, results in deflationary pressures on prices across all sectors. Ultimately, prices should fall to the marginal cost of production. If this premise holds true, I am compelled to question the collective conviction that monetary inflation is a necessary component for a functioning economy. To be more direct, why do we endorse a system where a certain loss in purchasing power, akin to a hidden tax, is deemed essential and undemocratically imposed upon us? Could it be that we find ourselves entangled in a conflicting paradigm? One where the exponential growth of technology, promising efficiency and deflation, clashes with the perceived need for inflation to stave off economic downturns, especially in the face of seemingly unsustainable levels of debt.
Deflation is a good thing your assuming that people would delay making purchases however those purchases would still occur in mass. People would still need to buy clothes, food, electricity etc.
The fear of deflation is over done as the world has only experienced very small periods of deflation! We have had 70 plus years of unrelenting inflation! But no deflation to speak of!
Write down all the notes and then make flashcards of definitions, any pros & cons in the video and evaluation points. You can just read the explanations from your notes
Very good presentation and clear explanation. Why should debt always remain same even when the money gains value?. Don't you think it is unfair for the borrower?. When banks are able to increase interest rate to adjust for inflation on long term loans then why can't they reduce the interest and principal to adjust for deflation?
Great vid really got into it, but one question... how can deflation be anticipated? I was thinking end of season sales etc but then when new stock is released it’ll be full price, plus end of season is different for every firm.
Well, deflation or a fall in general price levels in an economy may be achieved through contractionary demand-side policies (fiscal and monetary policy) perhaps to lower inflationary pressures in the economy. If this is not monitored carefully in the long-term, this may cause anticipated deflation...
Anticipating deflation involves analyzing various economic indicators and trends. Here are some key factors economists and policymakers might look at: Price Indices: Monitoring price indices like the Consumer Price Index (CPI) or Producer Price Index (PPI) can indicate whether prices are falling across a broad range of goods and services. Growth Rates: Slowing or negative growth rates in Gross Domestic Product (GDP), retail sales, or industrial production can signal reduced demand and potential deflationary pressures. Labor Market: Rising unemployment or stagnant wage growth may indicate weakening consumer demand, leading to lower prices. Consumer and Business Sentiment: Surveys or indices measuring consumer and business confidence can provide insights into future spending patterns and investment decisions. Credit and Monetary Indicators: Tightening credit conditions, declining money supply growth, or low interest rates nearing zero can suggest deflationary risks. Global Economic Conditions: Observing economic trends in major trading partners or regions can provide clues about potential deflationary pressures, especially in an interconnected global economy. Government Policies and Central Bank Actions: Monitoring fiscal and monetary policies, such as interest rate changes, quantitative easing measures, or government spending initiatives, can help assess policymakers' responses to deflation risks. By analyzing these indicators and trends, economists and policymakers can gain insights into the likelihood of deflationary pressures and take appropriate actions to mitigate its effects if necessary.
Deflation is simply ...or not simply in some ways...of a permanent contraction in credit otherwise known as a *"financial failure."* this can come in innumerable forms but in fact is the very definition of *"economics"* or to be specific *"economic"* as a *VERB.* Something that is *"economic"* is noted as having an enormity of capital expense with no discernible payout if ever ... but should such an item payout being of such enormous such as a nuclear power generating station...it will *"pay out"* not just in money but to an economy in theory for decades. The alternative to a *"deflation"* is not inflation but what's known as a *"White Elephant"* or some type of folly that has no hope of both literally and figuratively *"yielding anything."* there are many examples in the USA but the most easy examples of both types to see as expressed would be in the rise and fall of the USSR where economics did/did not play a constant role in the polity.
How come in deflation are interest rates always positive, considering the possibility of interest rates being lower or equal to inflation, eg. -3%-(-2%)=-1%
@@alumi9818 In the UK it would be very unlikely that the banks would lower interest rates to bellow 0%. Even in the 2008 financial crash the lowest they went to was 0.25%.
This is true in the economic model we have now… What if it was build with deflation, the market will regulate as it does now all the negative aspects will be nonexistent. In my view, inflation is a model to benefit the rich 1%… and you cant change it shortly due to the points you made, but if its „normal“ to have deflation people still would spend and lend money, they would just be very carefull and use it for things they really need or promise more than the deflation rate -> energy would be used for things that are really useful or necessary and allocated tho where it makes sense… all those products which bring no value but still get bought cause money is everywhere would finally die and the energy will be used for important stuff, could be a step into a brighter future. Buy Bitcoin and free yourself. NFA
keynesian economics lies. Instead of economics theory let’s look at historical evidence. Deflationary period during the golden age experience more economic growth then all of US history. Deflation got us out of the depression in 1920s. The Great Depression last longer due to government forced inflation with the New Deal...
You dropped this 👑
Totally agree
He never dropped it...he always had it on, the legend.
@Arya Thapar CPI的计算方法吗？
@@wu_hugo yes
i love how he is excited in every video it really keeps up my motivation
same haha
3:57 man slapped me into reality tf
Hey i am looking at this series for about 4 days and it has been the best series for economics i have ever seen, i am only 12 years old, so sometimes i need my mom to help me, but you are the only one that made me understand all the words u say(well some times not) so KEEP IT UP!!!!!!
if you are understanding these videos at 12 years old I promise you your future will be very bright
@@oziaga256 thank you
@@zombiegaming2228 bro wth you're 12 , you must be some genius , well done bro. I'm doing my GCSEs and I am using him to revise, he is so good
go play fornite kid
@@isabellasimon267 nooo isabella dont say that :(
deflation is the natural product of a free economy
You have done my assignment! Thank you so much...May Allah bless you..
you're a king! thanks as always 🥺❤️
bro you are a life saver! idk why i wasnt taught this in school. you explain stuff very easily thank you!!
Thank you Mr. Dal, you're a lifesaver!!!!!!
The baseline state of a competitive market without monopolies is deflationary. Human curiosity drives technological innovation, enhancing efficiency. This, combined with consumers constantly seeking "more for less" and entrepreneurs striving to stay competitive, results in deflationary pressures on prices across all sectors. Ultimately, prices should fall to the marginal cost of production. If this premise holds true, I am compelled to question the collective conviction that monetary inflation is a necessary component for a functioning economy. To be more direct, why do we endorse a system where a certain loss in purchasing power, akin to a hidden tax, is deemed essential and undemocratically imposed upon us? Could it be that we find ourselves entangled in a conflicting paradigm? One where the exponential growth of technology, promising efficiency and deflation, clashes with the perceived need for inflation to stave off economic downturns, especially in the face of seemingly unsustainable levels of debt.
Wow, really interesting and insightful stuff! Loved the energy, Awesome, Huge Thanks Dal!
Deflation is a good thing your assuming that people would delay making purchases however those purchases would still occur in mass. People would still need to buy clothes, food, electricity etc.
The fear of deflation is over done as the world has only experienced very small periods of deflation! We have had 70 plus years of unrelenting inflation! But no deflation to speak of!
Prices going down is always a good thing. The root of the problem is the entire debt based system, without growth, the whole Ponzi scheme fails.
Man ur teaching skills are outstanding
thank you very much economics vikstar!!! very interesting and helpful video (:
Legend! Let's go!
Thank you and great presentation by the way♥
Helped a lot ❤️ you're a god
Anticipated Deflation is like. I'm not going to buy food this month because it's gonna be cheaper next month
Only buying what you need? Minimalism maximized 💪
@@SimpleAbundance not really. But if I could postpone due to deflation until I really need the thing it's better for my finances and the environment.
Also, there are two videos labelled as episode 12, this one and 'Costs and benefits of inflation'
The real father of economics😍
well done and Thanks for all you do.
Hi Sir, I really like the analysis, but how do I retain all this information for the exam?? any pro tips would be useful
Write down all the notes and then make flashcards of definitions, any pros & cons in the video and evaluation points. You can just read the explanations from your notes
Remember everything. Take notes initially, then keep doing active recall and space out your repetition over as long a time period as you can.
absolute legend
have my kids what an econs god
Many thanks.
Very good presentation and clear explanation. Why should debt always remain same even when the money gains value?. Don't you think it is unfair for the borrower?. When banks are able to increase interest rate to adjust for inflation on long term loans then why can't they reduce the interest and principal to adjust for deflation?
Great vid really got into it, but one question... how can deflation be anticipated? I was thinking end of season sales etc but then when new stock is released it’ll be full price, plus end of season is different for every firm.
@Arya Thapar bruh no one understand a single thing you said
Well, deflation or a fall in general price levels in an economy may be achieved through contractionary demand-side policies (fiscal and monetary policy) perhaps to lower inflationary pressures in the economy. If this is not monitored carefully in the long-term, this may cause anticipated deflation...
@@ramanujanvenkatraman8540 lots of unnecessary language used there
When it seeps into expectations, businesses and consumers see a trend and predict it's going to continue
Anticipating deflation involves analyzing various economic indicators and trends. Here are some key factors economists and policymakers might look at:
Price Indices: Monitoring price indices like the Consumer Price Index (CPI) or Producer Price Index (PPI) can indicate whether prices are falling across a broad range of goods and services.
Growth Rates: Slowing or negative growth rates in Gross Domestic Product (GDP), retail sales, or industrial production can signal reduced demand and potential deflationary pressures.
Labor Market: Rising unemployment or stagnant wage growth may indicate weakening consumer demand, leading to lower prices.
Consumer and Business Sentiment: Surveys or indices measuring consumer and business confidence can provide insights into future spending patterns and investment decisions.
Credit and Monetary Indicators: Tightening credit conditions, declining money supply growth, or low interest rates nearing zero can suggest deflationary risks.
Global Economic Conditions: Observing economic trends in major trading partners or regions can provide clues about potential deflationary pressures, especially in an interconnected global economy.
Government Policies and Central Bank Actions: Monitoring fiscal and monetary policies, such as interest rate changes, quantitative easing measures, or government spending initiatives, can help assess policymakers' responses to deflation risks.
By analyzing these indicators and trends, economists and policymakers can gain insights into the likelihood of deflationary pressures and take appropriate actions to mitigate its effects if necessary.
Why is there an increase in the value of debt??
Can you provide the how and why?
Thanks u a lot. You saved me!
very useful, thank you
bro thank you for your work.
feel like this will be an ocr 25 marker
Thank you for helping me look good🙂
Awesome content!
great video 👏🏻👏🏻
thanks mr dal
Thankyou so much!! Really helped
when it comes to deflation will the profit of the firm fall and lead to losses and fall in money supply in the economy
cheers Dal
Deflation is simply ...or not simply in some ways...of a permanent contraction in credit otherwise known as a *"financial failure."* this can come in innumerable forms but in fact is the very definition of *"economics"* or to be specific *"economic"* as a *VERB.* Something that is *"economic"* is noted as having an enormity of capital expense with no discernible payout if ever ... but should such an item payout being of such enormous such as a nuclear power generating station...it will *"pay out"* not just in money but to an economy in theory for decades.
The alternative to a *"deflation"* is not inflation but what's known as a *"White Elephant"* or some type of folly that has no hope of both literally and figuratively *"yielding anything."* there are many examples in the USA but the most easy examples of both types to see as expressed would be in the rise and fall of the USSR where economics did/did not play a constant role in the polity.
But that means it's only bad for the economy IF it's overly reliant on debt.
How come in deflation are interest rates always positive, considering the possibility of interest rates being lower or equal to inflation, eg. -3%-(-2%)=-1%
SK9 did u find out the answer? I’m wondering that as well
@@noor_ask no
@@alumi9818 In the UK it would be very unlikely that the banks would lower interest rates to bellow 0%. Even in the 2008 financial crash the lowest they went to was 0.25%.
@Arya Thapar literally copy pasting the same thing for every question.
so deflation is good, and need to be the target for sustainable economy
AMAZINGGGG!! ANYONE ELSE TAKING MJ2021 PAPER 22 NEXT TUESDAYYYY
Yes xdddd
cheers bro
8:52
Is this needed for edexel?
yes
@@zk_011 are the graphs needed?
What do you think of our present situation with covid-19. Are we in a Anticipate Deflation or Short Term Benefical Deflation?
anticipated..
my guy
QUESTION: If demand side deflation is harmful, why don't central banks simply fix it by increasing the money supply?
increasing money supply would lower the value of money even more.
@teslaputs what??
@@AfricanGotPace I think that's the point bro
@@canismajoris6733 who are u and why are u replying to me
Can benign deflation give rise to demand-side deflation since consumers might start delaying spending?
No because Benign Deflation is unanticipated therefore consumers have no knowledge to delay their spending.
May Allah SWT bless you
What is AD or SRS
Aggregate demand and short run supply
This is true in the economic model we have now… What if it was build with deflation, the market will regulate as it does now all the negative aspects will be nonexistent. In my view, inflation is a model to benefit the rich 1%… and you cant change it shortly due to the points you made, but if its „normal“ to have deflation people still would spend and lend money, they would just be very carefull and use it for things they really need or promise more than the deflation rate -> energy would be used for things that are really useful or necessary and allocated tho where it makes sense… all those products which bring no value but still get bought cause money is everywhere would finally die and the energy will be used for important stuff, could be a step into a brighter future. Buy Bitcoin and free yourself. NFA
do you need to know this for Edexcel A?
i think it may come up on paper 2 this year
@@johnc9505 Thx :) what else do you think might come up
@@user-eb4ox4sd6v i’m thinking BoP and monetary policy but i’m not sure ; i’m actually terrified for the exam i’m not ready at all
He should be made Chancellor
Exam in few days who's like me here 😢
Revising 15 mins before the exam 😂😂😂😂
how did the exam go
So it means a bitcoin monetary system is very bad for growth.
keynesian economics lies. Instead of economics theory let’s look at historical evidence. Deflationary period during the golden age experience more economic growth then all of US history. Deflation got us out of the depression in 1920s. The Great Depression last longer due to government forced inflation with the New Deal...
can we get some intro music please
B. S. !!!
thanks daddy
bruh
You talk like rishi sunak😅
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