Friday, November 19, 2010

Quantitative Easing Explained

here is a funny video explaining the FED stimulus and Quantitative easing.

Enjoy !

http://www.youtube.com/watch?v=PTUY16CkS-k

8 comments:

Allison Ross said...

This is an interesting way to explain to non-economics students the current financial situation. With over 2 million hits, hopefully people will understand better and be less afraid of the current economy. Expectation has been playing a huge role in the current financial crisis.

Allison Ross said...

This is an interesting way to explain to non-economics students the current financial situation. With over 2 million hits, hopefully people will understand better and be less afraid of the current economy. Expectation has been playing a huge role in the current financial crisis.

Scott Hellberg said...

goldman sachs haha

Scott Hellberg said...

goldman sachs haha

Scott Hellberg said...

goldman sachs haha

Ben Wallingford said...

This video is quite useful for demonstrating fundamental concept of quantitative easing that many people do not understand - it is printing money! Quantitative easing increases the money supply by increasing banking reserves, this time through buying treasuries. The Fed deserves the negative reception it is getting from its quantitative easing measures. Are they really making a difference?

Kyle Herman said...

I think this video cherry-picks its facts a little to make the Fed look bad (like naming certain items that have become more expensive over the past year even though inflation is low when other items are taken into account). But nonetheless this is entertaining and educative, and most of the criticism is fair.

JP said...

Ben, I agree printing money is not always a good way to recover the economy however, QE2 will help increase share prices and lower yields which eventually devaluate the dollar. These in turn will spur spending and increase exports. Lower real yields may also spur borrowing and investment. These are the positives that I can get out of quantitative easing