Money and Inflation Explained | Feducation

Описание: How are the money supply and inflation related? And what does the Federal Reserve have to do with this relationship? This video:
-Reviews functions of money: medium of exchange, store of value, and measure of value.
-Demonstrates the relationship between the money supply and inflation.
-Uses a simple equation to show how changes in the money supply affect the economy: MV=PQ. (M is Money supply, V is Velocity of money, P is overall Price level, and Q is Quantity of goods and services.)

Host Scott Wolla also describes how the Fed uses monetary policy to achieve its dual mandate of maximum employment and price stability.

00:00 - Intro
01:21 - Money as Medium of Exchange
02:06 - Money as Store of Value
02:35 - Money as Measure of Value
03:16 - Audience Auction Activity
04:54 - What Is Inflation, What Causes Inflation?
05:54 - Equation of Exchange
07:55 - Money Supply
10:10 - Fed Monetary Policy
10:54 - Summary

From Our Blog:
-What Makes Money, Money? https://www.stlouisfed.org/open-vault...
-Inflation, Disinflation, Deflation https://www.stlouisfed.org/open-vault...
-Quantity Theory of Money Mv = PQ https://www.stlouisfed.org/on-the-eco...
-Fed's Dual Mandate https://www.stlouisfed.org/in-plain-e...

About Feducation:
This series overviews economics and personal finance topics, including Federal Reserve monetary policy tools. Full series: https://www.stlouisfed.org/education/...

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#inflation #pricestability #moneysupply #money #economics #macroeconomics #output