EC210 Explained: How Central Banks Set the Interest Rate

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Learn how to Central Banks "set" interest rates in the economy. Find out why the interbank lending market is so important and the difference between the pre-crisis "Corridor System" and the post-crisis "Floor System"

This video was designed for the LSE EC210 Macroeconomics course.

If you have any questions about this topic or would like to see another topic covered in my next video, leave a comment below!
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One of the biggest clarity you gave was signally that it's not consumer loans or borrowing by individuals but between banks (interbanks) and the Central Bank.

Thanks for the insights

ekeretteekanem
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Thank you!! Clearest video I’ve seen on this

tomisoetan
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Much easier to understand than my economics teacher

williamgarnock
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Great video! Unfortunately the volume is too low.

explicacaoonline