Understand Money

Posted October 24, 2020

Monetary Policy is the US government’s most powerful economic policy tool. The Fed is currently creating $120 billion a month and pumping it into the financial markets. That explains why stock prices are so high and why interest rates are so low.

Do you understand how Monetary Policy works? Watch these nine Macro Watch videos and you will.

The Money Revolution
This video explains why the nature of Money changed and why that matters for the economy and the financial markets.
First Quarter 2018

The History Of US Monetary Policy
This video explains the past century of US Monetary Policy.
First Quarter 2018

28 Days (and $1.8 trillion) Later
This video explains the Fed’s policy response to the economic impact of the Coronavirus by analyzing the evolution of the Fed’s balance sheet.
Second Quarter 2020

Inflation Over The Last 100 Years
This video describes the causes of Inflation in the US over the last 100 years.
First Quarter 2018

The Velocity Of Money Is Irrelevant
This video explains that the Velocity Of Money no longer impacts the Inflation Rate. 
Third Quarter 2020

What Are Bank Reserves? 
Many commentators believed that Quantitative Easing did not work because the QE money appeared to pile up in the banks’ Reserve Accounts at the Fed, rather than being lent. This video explains why that conclusion was wrong.
Second Quarter 2019

Bank Reserves Are Irrelevant. QE Works!
Many believe that Quantitative Easing simply gets stuck in the banks as Bank Reserves and does nothing to help the economy. This video demonstrates why that idea is incorrect.
Fourth Quarter 2020

QE Is Debt Cancellation
When a central bank prints money and buys a government bond, it is the same thing as cancelling that bond (so long as the central bank does not sell that bond back to the public). This means the governments have far less debt than is generally understood. It also has very important implications for policy. Governments could spend more to restructure the economy, end the global economic crisis and reverse the decline in the middle class standard of living.
First Quarter 2015

Gold Is Not A Sure Bet
This video warns that Gold is not a sure bet. If Inflation does not rise significantly, there is a possibility that the price of Gold could correct sharply again.
Second Quarter 2020

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