LM part of the IS-LM model | Macroeconomics | Khan Academy
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- čas přidán 10. 04. 2012
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How the theory of liquidity preference drives demand for money and the LM (liquidity preference-money supply) curve
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strange how most of us here are paying to take courses supposed to teach us this but we're resorting to free videos to actually learn the content... makes you think about the future of modern academic institutions
700o
Lu l
That's why they charge so much, they know in the future the price of education will go down - expectations of the future impact price levels
Strange how most of our paid courses are referring us to this, and I still don't understand it
so true
That's the best explanation I got about IS - LM curve on the whole web. And believe me I read/viewed a lot of articles/videos and the CFA books.
Thx a lot
jeffy141 the CFA book is garbage. hence why I'm on here lol
@@highdiary Lol, taking level 1 this summer and I am here exactly for the same reason.
@@willbellick hey,
But what is said here seems to contradict the books...
One week until my final exam in macro economics and I´m pretty sure that these videos are the things that´s gonna save my ass! Thanks a lot Khan Academy from Sweden!
One week? I got one day... LOL
3 hrs left, wish me luck :D
Andrius Baziuk how did it go?
@@@jingadom R.I.P. Andrius Baziuk
@@heavymetalrox268 how was the test?
How brilliantly he explained it.... I'm learning this for cfa level 1.. hats off 👏
Honestly saved my ass, best textbook in the market didnt even mention half the info you provided.
same hope this question comes in my exam in the next 4hrs😂
This just saved me hours of toiling over hastily scribbled notes! Thanks a lot!
Last night before exam🙃
ive done a whole semester on this topic and this video has explained it to me the best that fast,... wow... thanks
Thank you Khan Academy for such a high quality content! You are loosing on consumer surplus by uploading it for free ;).
Great video!
Just a small question - how exactly are the 2 curves LM and IS constraints?
very good explanation! thank you so much!
My goodness who would have thought that an online video teaches you things better than my macro professors at Warwick University - one of Britains top economics universities
That's why Khan has 6M subscribers :)
Same here at LSE. My god.
Very simple explanation which I will recommend to my students for revision purposes.
Hey man, you have a whole lot of great videos all the way from Kenyes to the IS-LM model, and it seems like they are mostly made in som kind of chronological order. However I can't seem to find a playlist with all the videos in the correct order. Any way you could point med to this, if it exists, create one, or maybe just give a list of the correct order to watch these videos?
Thx in advance!
can't believe I'm watching khan since I was in year 8 and now I'm in university still watching it , he is really a legend in teaching.
Great videos! Its very pedagogical and a plus is that you have a great voice to listen to! :)
yes! its one of the 3 ways to look at it. aggregated production, aggregated income, or something else i forget about now haha
As good as this guy is at explaining stuff (and he is, trust me), I feel like I still got it better from my professor, and that guy is an absolute boss on IS-LM-FX.
this was very helpful thanks a lot!
Great video bud thank you for this
the explanation for such a difficult concept is so easy to understand!!
Idk man when i hear the way u pronounced the LM curve at 2:06
it always remind me the samuel.L.Jackson :"Honey,Where is my supersuit?"
I've been struggling with learning macroeconomics. But thanks to this talented teacher I'm not worried for my exam tomorrow
thank you
Wow thank you so much!
Does this guy realize he’s going to heaven?
Allah razı Çok faydalı oldu
Which software are you using ?
Nice
@vogelszijnleijk The X axis can represent real GDP in the short run as prices are held constant.
IS-LM is a nice little model.
Hicks created it and it doesn't really bare much resemblance to Keynes' actual ideas. Plus, Hicks only intended it to be a class room device...
Wayne Kerr it does. As he said in his video, you assume that prices are sticky if real money increases. Sticky prices is a keynesian view
Why am i only just watching these the night before
I had a question what happens to unemployment rate when consumers use more cash?
when you say real GDP...(Y) is also know as level of income or income????
I didn’t understand his link between Low levels of GDP, which will lead invariably to low levels of saving, but then relates it to low levels of interest? There seems to be some missing link there but I can’t find it 😔. Is it because banks want to attract more customers so interest rates are set high deliberately for that reason?
under what circumstances would a IS curve be vertical? Closed or Open economy? I got this question I got wrong on my midterm
If investment is perfectly insensitive to rate of interest, I. E dI/dr becomes 0, equation of IS becomes
Y=C(y) +I
So, dY/dr=O along the is curve
In other words, following a change in r there will be no change in investment which in turn will leave the aggregate demand unaffected. This, IS becomes vertical.
Pls can't find the Is part
Hi guys can you please add the subtitle in french I can understand all of that 😟please thank you so much
Cool
Thanks, Phil Dunphy
yo guys do u do private tutoring?
Muy Bien. Pero mejor en Español...podrian enviarlo en español?....
I must mention that the videos in the playlist are not in proper sequence.
Mhmm love the voice
the best-explained tutorial of IS-LM model.
Price of money is interest rate
Then that GDP is a nominal one, isn’t it?
Is didn't get the saving part
So we just keep printing money then....
How can interest rate increase with increase in money supply
Rightward shift of money supply curve, i.e. an increase in money supply, holding all other factors constant, would reduce interest rate.
How do interest rates drive planned investment? High interest rates, less investment, why is that so?
people will take more loans for investment if interest rates are low !
abhishek jain logically speaking, a higher interest rate means more people are willing to save because the return on their savings is high. but because interest is high less people want to borrow so investment will be low
Everybody's in the comments be like i have like a week till exams. Me being no exception!
Not 2nd
why am I paying thousands of dollars to study in a top university when I learn the same thing in a better way from Khan academy?
This is NOT a right explanation of the IS/LM model. First of all the x axis does not represent real GDP but nominal GDP or aggregate demand. Second the assumption of a higher propensity to save at higher income is not necessary to derive a downward sloping IS curve. This would be the case with a constant saved proportion as well. But more importantly what you explained as two seperate ways to derive the IS curve are in fact not seperate at all. They are interlinked and one is not sufficient without the other.
vogelszijnlelijk isn't it supposed to be Y (Income, Output), which equals real GDP, as opposed to PY which is treated as nominal GDP? I think he has sourced his material from Dornbusch, Fischer and Startz.
😅😅😊😅😊😊
First Hazlitt then "Keynesian mercantilism"?
Come back when you've read an economics textbook that was published this century.
In the meantime, you've had 3+ opportunities to watch this video, which is about modeling liquidity preference: the LM curve here is a generally tested--albeit simplified--model designed to illustrate complex processes. You say that you don't like economics models, but models are just that: models.
...like the schemata and bias that you hold, except with math.
did not help
just so no1 can claim 1st
...read a 1959 book that's just a critique of a 1936 book?
Really, that's what it is.
Expertly trolled, my friend. Well done.
On the off chance that you are even 1% serious, look:
1950's "solutions" to 1930's economics "problems" are ridiculous--the world has changed, and--thankfully--has our understanding of economics; Hazlitt rejects testability because he didn't like being proved wrong and he pretty much rejected all mathematical modeling, which was just plain stupid, because, as Khan demonstrates, it's pretty darn accurate. Please try to learn something next time.
This explains nothing T-T