Liquidity Traps- Macroeconomics

Hey internet, this is Jacob Clifford. Thank you for watching my videos. So, what's so weird about the US economy today? Well, interest rates are extremely low, banks have extra money that they are not loaning out, and the massive increase in the money supply starting in 2008 hasn't resulted in inflation. In this video I discuss why and explain the idea of a liquidity trap.

All data from St. Louis Federal Reserve

FED article about Excess Reserves

FED article about missing inflation

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Thanks again. You rock!

[inFamousxable]

You are the type of teacher we need but not the one we deserve.

[RdyhQ.RDPDyFgDmSZqC]

I'd love follow up video on missing inflation. This subject is so important.

[HarryRunes]

Really like this video. Reminds people that economics is a lot more nuanced than what they learn in introductory classes

[valentinaminghetti]

"The real thing which is missing is inflation".

2021: hold my beer

[tylerzhang]

Really really appreciate your work. There's been less and less teachers who would spend time relating these academic stuff to real life's events and try to make students see the meaning of the knowledge they are acquiring at the school. Thanks!

[frankuher]

You’re a life saver. You’re videos help me get an A in my macroeconomics class. Thank you.

[sdproductions]

your amazing for this vid. ive been trying to work my head around it for like 3 hours and you've came and made it all so easy

[alltimechiller]

You're the God of Economics! I don't have to read any book after listening to your lectures. And thanks a bunch for speaking slow. It helps non-native English speakers.

[LifeKiT-i]

Your explanation is actually on point!

[yashb]

Can you make a follow up on this inflation -- especially now after the COVID recession?

[dr.billschlosser]

Outstanding discussion about what is happening and why. Consider the reality that we have already entered a recession, at about the same time China devalued the Yuan (August 2015) and we have not yet entered a recovery in full force. Passage of the proposed tax bill would help, along with passage of about a dozen bills sitting in the Senate waiting for something... We want to see a real jobs recovery.
Most excellent video to set the stage for these discussions.

[stuartpollock]

This is one of the best videos so far! Thank you.

[DarylDiong]

Really informative. Glad I subscribed!

[noahshepard]

Hey Mr. Clifford, I liked this video a lot. You should also do a video breaking down the new tax bill? Thanks!

[kys]

I also liked this video.  I like how it's relevant to what's going on in current events.

[TACOSonSTEROIDS]

Great video! Curious to see what kinds of sources are worth looking into to stay up to date on this circumstance.

[Shaylie]

Wow he was so right, prices be crazy rn

[maxteitelbaum]

Hey Mr. Clifford, could you make a video on the IS-LM model?

[ghostcat]

At the end, it looked like you pushed yourself away haha. Anyway, thanks for this video.

[cherieminn]

i love your very clear explanation 💯 TQ💗