How the Federal Reserve Works: After the Great Recession

In response to the Great Recession, the Federal Reserve has implemented some new instruments and policies – including quantitative easing, paying interest on reserves, and conducting repurchase (and reverse repurchase) agreements. In this video we cover how these tools work, and why they matter.

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[HPBfifa]

Wow. What a great video! Thank you so much. Very clear, simple explanation, of something i previously found extremely difficult.

[TheGerogero]

Increasingly, economics seems quite tragic to me. We deal with issues as they present themselves, develop specific instruments for specific problems, while not fully understanding the origin of these problems nor the exact effect of our instruments—let alone institutions. Problems are transformed and passed along in silence until the dam no longer holds and we have a crisis on our hands. And yet there is nothing to do but what we do.

[MrRombooth]

What a cool video series, thank you. What would be great is to have a video that reflects the monetary environment we are in after rising interest rates!

[detectiveofmoneypolitics]

Economic investigator Frank G Melbourne Australia is following this informative content cheers Frank 😊

[tradershads]

Would be good to have a video on the current fed action

[Mujangga]

Aren't OMOs conducted to control the money supply? Why would they be used for other purposes? If banks now get interest on their reserves, where does that money come from? Does the Fed just create it? Does that cause inflation?

It seems modern day money creation is based on debt; would it be possible to create money without debt?

[pelumiobasa]

Can you guys do a video on the permanent income model

[NIsForNoobCakes]

It seems that the Fed has made a hash out of the age old "fractional" vs "full" reserve banking dichotomy--in a fractional system the banks themselves have decided to hold reserves capable of backing their liabilities in full.

[joecurran]

I know I'm late but what's the difference between demand deposits and excess reserves.

[jayf]

How are lower interest rates not the result of QE?

[PANDEYJITOURsVLOG]

Videos are good sir.. please go slow on explaining

[aakashojha]

I am trying to learn but find it quite complex and confusing. Can anyone guide me what are the prerequisites of the video?

[sananosser]

Great video! You are laying the foundation for tommorow's hedge fund billionaires

[torpedospurs]

"Low interest rates lead to low mortgage interest rates?". Calling QE a swap? Calling a Fed repo a swap? Explaining just one half of a repo and not the 'repurchase' part? This is a pretty bad video by MRU standards.

[seanbrown]

This is pretty horrifying to be honest. It seems like a vast amount of centralized power continually tinkering with an auto regulated system of billions of people and slapping more complex bandaids on increasingly complex wounds.

[frankgarcia]

This video told nothing but the truth but the info is completely slanted to suggest that everything done was a good thing instead of delaying a much bigger crash.

[cjlewis]

What I don't get is why we would ever need to decrease the economy. I thought the goal was always to expand so why is there reverse repurchase agreements?

[MrLazyleader]

This video doesn't explain anything. How does buying mortgage bonds reduce interest rates?

[eagleartillery]

By the way problem is deeper than FED itself. Consumerism can't continue for ever.

[justcallmarkco]

Please share this cow, for no particular reason.