Who here Does Economics?

[msagrain]

WHY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!! fawking pointless, rant over.

[Barnburner]

At least it's better than History, that gets harder every year.

[paulf]

Got my BSS in Economics. Amazing field and interesting line of study. I couldn't imagine going to college for anything else.

[msagrain]

Originally Posted by paulf

Got my BSS in Economics. Amazing field and interesting line of study. I couldn't imagine going to college for anything else.

Explain to me how more money is put into the system.

I have economics as a module and I'm actually starting to hate it as I don't understand it. I don't have enough time to study it. I do 5 modules and it's to one I neglect the most.

[Ivansmamma]

central bank puts money into the system by buying obligations from the state.

[paulf]

Originally Posted by msagrain

Explain to me how more money is put into the system.

I have economics as a module and I'm actually starting to hate it as I don't understand it. I don't have enough time to study it. I do 5 modules and it's to one I neglect the most.

I'm an American, but here it is in the plainest language

Originally Posted by Investopedia

1) The Fed can influence the money supply by modifying reserve requirements, which is the amount of funds banks must hold against deposits in bank accounts. By lowering the reserve requirements, banks are able loan more money, which increases the overall supply of money in the economy. Conversely, by raising the banks' reserve requirements, the Fed is able to decrease the size of the money supply.

2) The Fed can also alter the money supply by changing short-term interest rates. By lowering (or raising) the discount rate that banks pay on short-term loans from the Federal Reserve Bank, the Fed is able to effectively increase (or decrease) the liquidity of money. Lower rates increase the money supply and boost economic activity; however, decreases in interest rates fuel inflation, so the Fed must be careful not to lower interest rates too much for too long.

3) Finally, the Fed can affect the money supply by conducting open market operations, which affects the federal funds rate. In open operations, the Fed buys and sells government securities in the open market. If the Fed wants to increase the money supply, it buys government bonds. This supplies the securities dealers who sell the bonds with cash, increasing the overall money supply. Conversely, if the Fed wants to decrease the money supply, it sells bonds from its account, thus taking in cash and removing money from the economic system.

[DosRounds]

Originally Posted by msagrain

Explain to me how more money is put into the system.

I have economics as a module and I'm actually starting to hate it as I don't understand it. I don't have enough time to study it. I do 5 modules and it's to one I neglect the most.

what level? Is it an undergraduate course.

Basically the CB can use open market operations, buying bonds and **** from the government and that leads to an increase in the money supply.

[Miburo]

Talk to Nodogoshi, he's working on his PhD in it.

[DosRounds]

Originally Posted by paulf

I'm an American, but here it is in the plainest language

yeah all of what this guy said

[One_Profiteer]

Originally Posted by paulf

Got my BSS in Economics. Amazing field and interesting line of study. I couldn't imagine going to college for anything else.

Someone once told me a funny definition of Economics: The things you knew your whole life in a language you can't understand.