Explore the basics of deflation, including the definition of deflation, how the CPI changes when there is deflation, and why economists tend to be concerned when deflation occurs. Created by Sal Khan.

One of the biggest worries associated with deflation is a deflationary spiral, in which low unemployment and a decreasing price level leads to lower unemployment and an even lower price level. Created by Sal Khan.

How you can have deflation even if the money supply increases. Created by Sal Khan.

Why do people hold wealth in the form of money, rather than in some other interest-earning asset? Learn about the demand for money in this video.

A real-world example of the concepts behind the AD-AS model is the inflation that the United States experienced in the late 1960s. In this video, we break down some of the events going on at the time and use the AD-AS model to see if our predictions using this model match what really happened. Created by Sal Khan.

Showing how a change in government spending can lead to a new equilibrium. Created by Sal Khan.

This course emphasizes dynamic models of growth and development. Topics covered include: migration, modernization, and technological change; static and dynamic models of political economy; the dynamics of income distribution and institutional change; firm structure in developing countries; development, transparency, and functioning of financial markets; privatization; and banks and credit market institutions in emerging markets.

At MIT, this course was team taught by Prof. Robert Townsend, who taught for the first half of the semester, and Prof. Abhijit Banerjee, who taught during the second half. On OCW we are only including materials associated with sessions one through 13, which comprise the first half of the class.

The Local Development and Local Opportunities book is one of the first of its kind, in particular in the context of development of the small Anatolian cities. The book, on one hand, discusses opportunities offered by the small Anatolian cities; and on the other hand, shares new proposals for potential development programs.

An introduction to the difference between wealth and income. Created by Sal Khan.

This is the full course material for a Principles of Macroeconomics Course. It includes study notes, lecture notes, and video lectures.

An introduction to current macroeconomic concerns with particular emphasis on medium-run economic fluctuations, economic crises, and the role of asset markets. Topics include the explanation of high chronic unemployment in some nations, the source of modern liquidity crises, the origin and end of speculative bubbles, and the factors that lead to substantial periods of economic stagnation.

Economic growth is an expansion of the capacity to produce goods and services. Economists traditionally believed that expanding the stock of capital leads to economic growth. In this video, we explore the important link between investment and growth using the PPC model. Created by Sal Khan.

Economic models are a way of taking complicated ideas and events and breaking them down into their most important characteristics. We use models in economics so that we can focus our attention on a few things instead of getting bogged down a lot of details. In this video, learn more about the role that models play in economics, and the importance of the assumptions that underlie those models.

How are nominal real interest rates determined? In the money market! Learn about the money market in this video.

In this video explore a simplified example of how to calculate real GDP from nominal GDP using the GDP deflator. Created by Sal Khan.

In this video, Sal walks through a practice exercise calculating the CPI and inflation.

Thinking about how different types of expenditures would be accounted for in GDP. Created by Sal Khan.

Learn about what an exchange rate is and how to determine the cost of goods in another currency.

In this video, we explore how purchases of different things affect GDP, or why they wouldn't!