The Money View: The Inherent Instability of Credit

The Money View: The Inherent Instability of Credit

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Interactive Video

Business

University

Hard

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The video tutorial explains the mechanisms behind a housing bubble, focusing on the roles of credit and money expansion. It uses a house buying and selling example to illustrate how mortgages and deposits function as assets and liabilities for banks. The tutorial highlights the importance of the interbank funding market and the wholesale money market in these transactions, especially during financial crises.

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What new insight or understanding did you gain from this video?

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