Think Like An Economist

S E35: Connecting Interest Rates & Output

Mar 23, 2021

23:39

Highlights

AI Chapters

Episode notes

How the Real Interest Rate Shapes the Economy

01:46

The Government's Multiplyer Effect on Output

02:05

The Federal Reserve Sets the Real Interest Rate

02:07

Introduction

3min

How the Real Interest Rate Shapes the Economy

2min

How Do Economists Measure Demand?

2min

How Real Interest Rates Affect Aggregate Expenditure

2min

How Does a Lower Real Interest Rate Increase Net Exports?

3min

The Federal Reserve Sets the Real Interest Rate

2min

The Interest Rate You Get When You Take Out a Personal Loan

2min

How a Lower Real Interest Rate Leads to More Spending and More Output

2min

How the Real Interest Rate Impacts Output

2min

10.

The Government's Multiplyer Effect on Output

2min

11.

The Basics of Macroeconomics

2min

What is the most important price in the economy? Betsey Stevenson and Justin Wolfers say that it's the interest rate, and they dig into where it comes from, and how it drives all spending in the economy. These big ideas yield a framework called the IS-MP model which policymakers use to help devise fiscal and monetary policies to kick-start the economy.

Co-host: Nastaran Tavakoli-Far. Editor: Alastair Elphick. A Modulated Media production.

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