Basic introduction to what microeconomics and macroeconomics study. A bit on Adam Smith

Circular flow of income and expenditure. Gross domestic product. This very short tutorial gives us the big picture of what economics is all about and, in particular, compares macroeconomics (where you are now) to microeconomics.

Looking at actual sequential and year-over-year inflation data

Inflation and deflation. CPI-U. Real and nominal return. Phillips Curve.

Understanding the components of the expenditure view of GDP. Consumption, investment, government spending and net exports

Circular flow of income and expenditure. Gross domestic product. You already understand the circular nature of the economy and how GDP is defined from the last tutorial. Now let's think about how economists define the composition of GDP. In particular, we

Fractional reserve banking and the money supply.

Understanding how the headline unemployment rate (U-3) is calculated

Inflation and deflation. CPI-U. Real and nominal return. Phillips Curve.

Generalizing what we did in the last video with more math

Consumption function. Marginal propensity to consume and multiplier. Keynesian Cross and IS-LM model. If you earn a $1, you might spend some fraction of it. This can then be income for someone else. This can keep going. In this tutorial, we'll explore how

Understanding how changes in foreign ownership of assets effects balance of payments

Balance of payments. Current account. Capital account. Currency reserves and speculative attacks. In this tutorial we will see how trade and assets (including money) changing hands are fundamentally intertwined. Not only that, but we will see how this can

The business cycle and how it may be driven by emotion

Aggregate demand and aggregate supply. Keynesian thinking. Demand-pull and cost-push inflation. Fiscal and monetary policy. Economies never have a long steady march upwards. They constantly oscillate between growth and recession. This tutorial gives a lit

Contrasting Keynesian and Classical Thinking

Aggregate demand and aggregate supply. Keynesian thinking. Demand-pull and cost-push inflation. Fiscal and monetary policy. Whether you love him or hate him (or just consider him a friend that you respect but disagree with every-now-and-then), Keynes has

Weaknesses of Fractional Reserve Lending

Fractional reserve banking and the money supply.

Basic mechanics of monetary and fiscal policy

Aggregate demand and aggregate supply. Keynesian thinking. Demand-pull and cost-push inflation. Fiscal and monetary policy. Governments (and pseudo government entities like central banks) have two tools at their disposal to try to impact the business cycl

Simple example of calculating Real GDP from Nominal GDP

Circular flow of income and expenditure. Gross domestic product. The value of a currency is constantly changing (usually going down in terms of what you can buy). Given this, how can we compare GDP measured in dollars in one year to another year? This tut

Introduction to the Investment/Savings curve

Consumption function. Marginal propensity to consume and multiplier. Keynesian Cross and IS-LM model. In this tutorial, we begin thinking about the impact of real interest rates on planned investment and output. We then use this to help us plot the IS cur

Going through the mechanics of how a Thai financial institution can lose their shirt when their currency devalues.

Balance of payments. Current account. Capital account. Currency reserves and speculative attacks. This tutorial delves into how and why countries (usually their central banks) would want to keep other countries' currency in reserve. It then goes into why

Generalizing a linear consumption function as a function of aggregate income

Consumption function. Marginal propensity to consume and multiplier. Keynesian Cross and IS-LM model. We are steadily building up the tools to understand the Keynesian Cross and the IS-LM model. In this tutorial, we begin to model consumption as a linear

Thinking about how different types of expenditures would be accounted for in GDP

Circular flow of income and expenditure. Gross domestic product. You already understand the circular nature of the economy and how GDP is defined from the last tutorial. Now let's think about how economists define the composition of GDP. In particular, we

How a supply shock can cause prices to rise and the economy to stagnate

Inflation and deflation. CPI-U. Real and nominal return. Phillips Curve.

How and why a central bank would build foreign currency reserves

Balance of payments. Current account. Capital account. Currency reserves and speculative attacks. This tutorial delves into how and why countries (usually their central banks) would want to keep other countries' currency in reserve. It then goes into why

The basic idea of a consumption function

Consumption function. Marginal propensity to consume and multiplier. Keynesian Cross and IS-LM model. We are steadily building up the tools to understand the Keynesian Cross and the IS-LM model. In this tutorial, we begin to model consumption as a linear

Overview of full reserve banking in comparison to fractional reserve banking

Fractional reserve banking and the money supply.