{"id":39632,"date":"2017-08-13T02:00:16","date_gmt":"2017-08-13T06:00:16","guid":{"rendered":"http:\/\/quotulatiousness.ca\/blog\/?p=39632"},"modified":"2017-08-03T09:36:20","modified_gmt":"2017-08-03T13:36:20","slug":"saving-and-borrowing","status":"publish","type":"post","link":"https:\/\/quotulatiousness.ca\/blog\/2017\/08\/13\/saving-and-borrowing\/","title":{"rendered":"Saving and Borrowing"},"content":{"rendered":"<p align=\"center\"><iframe loading=\"lazy\" width=\"853\" height=\"480\" src=\"https:\/\/www.youtube.com\/embed\/L-GouzQaAno?list=PL-uRhZ_p-BM52EbMG1NR1ZfG9tEvcxE4u\" frameborder=\"0\" allowfullscreen><\/iframe><\/p>\n<blockquote><p><strong>Published on 21 Jun 2016<\/strong><\/p>\n<p>On September 15, 2008, Lehman Brothers filed for bankruptcy, and signaled the start of the Great Recession. One key cause of that recession was a failure of financial intermediaries, or, the institutions that link different kinds of savers to borrowers.<\/p>\n<p>We\u2019ll get to intermediaries in the next video, but for now, we\u2019ll first look at the market intermediaries are involved in.<\/p>\n<p>This market is the combination of savers and borrowers \u2014 what we call the \u201cmarket for loanable funds.\u201d<\/p>\n<p>To start, we\u2019ll represent the market, using two curves you know well\u2014supply and demand. The quantity supplied in the market comes from savings, and the quantity demanded comes from loans. But as you know, we have to factor in price. In the case of the market for loanable funds, the price is the current interest rate.<\/p>\n<p>What happens to the supply of savings when the interest rate goes up? When are borrowers compelled to borrow more? Or less? We\u2019ll cover these scenarios in this video.<\/p>\n<p>One quick note: there\u2019s not really one unified market for loanable funds. Instead, there are many small markets, with different sorts of lenders, lending to different sorts of borrowers. As we said in the beginning, it\u2019s financial intermediaries, like banks, bond markets, and stock markets, which link these different sides of the market.<\/p>\n<p>We\u2019ll get a better understanding of these intermediaries in our next video, so stay tuned!<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Published on 21 Jun 2016 On September 15, 2008, Lehman Brothers filed for bankruptcy, and signaled the start of the Great Recession. One key cause of that recession was a failure of financial intermediaries, or, the institutions that link different kinds of savers to borrowers. We\u2019ll get to intermediaries in the next video, but for [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":35193,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[25],"tags":[436,71,1093,718],"class_list":["post-39632","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banking","tag-debt","tag-macroeconomics","tag-recession"],"jetpack_featured_media_url":"https:\/\/quotulatiousness.ca\/blog\/wp-content\/uploads\/2016\/06\/favicon.png","jetpack_shortlink":"https:\/\/wp.me\/p2hpV6-aje","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/39632","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/comments?post=39632"}],"version-history":[{"count":1,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/39632\/revisions"}],"predecessor-version":[{"id":39633,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/39632\/revisions\/39633"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/media\/35193"}],"wp:attachment":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/media?parent=39632"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/categories?post=39632"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/tags?post=39632"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}