Ultimate Stocks & Forex Trading Course: [Lesson 8] Inflation/Deflation/Stagflation/Goldilocks
Stocks & Forex Trading Course: [Lesson 8] Inflation/Deflation/Stagflation/Goldilocks
Full 100 video Stocks & Forex Trading Course available for FREE at https://www.getmetrading.com
Lesson 8 of 100 - Macro Fundamental Analysis Module (Macroeconomics)
Lesson Spreadsheet Download: https://getmetrading.com
This 100 video Stocks & Forex Trading Course is designed to provide traders and investors with everything they need to know to navigate the financial markets like a Professional trader and investor.
The Stocks & Forex Course is structured in four key parts to provide a complete financial education. The four key areas covered in this Course are:
1) Macro Fundamental Analysis (Lessons 1 to 59)
2) Fundamental Analysis of Stocks & Companies (Lessons 60 to 72)
3) Price Action & Technical Analysis (Lessons 73 to 83)
4) Advanced Risk Management Principles (Lessons 84 to 100)
Lesson 8 Overview:
In this lesson you will learn how Inflation, Deflation, Stagflation and a Goldilocks economy are caused due to shifts in the Aggregate Demand Curve & the Short Run Aggregate Supply Curve in relation to the Long Run Aggregate Supply Curve. Deviations to the left and to the right of the Long Run Aggregate Supply Curve represent temporary and unsustainable levels of output which cause either an Inflationary Gap (Positive Output Gap) or a Deflationary Gap (Negative Output Gap).
Understanding these 4 macroeconomic conditions is key when trading financial markets since each economic condition drives markets in a different way. It is the Macroeconomics and Fundamental Analysis which will enable you to predict market moves in Forex, Stock, Bonds & Commodities before they happen. You will learn exactly how to do this in this Stocks & Forex Course.
In this lesson we discuss the "Self Healing" mechanism of the markets, however, after the Great Depression in the US (1929 - 1939) it was argued that the "Self Healing" mechanism of markets does not always work. In response to the length of the Great Depression, Central Banks and Governments began to take a more active role in the economic recovery process though continuous interventions using Monetary Policy and Fiscal Policy respectively to manage the Aggregate Demand Curve both the the Left (to cool down the economy) and to the Right (to stimulate the economy).
STOCKS & FOREX MARKET DIRECTION KEY
When an economy is operating to the Right of the Long Run Aggregate Supply Curve due to a shift in the Aggregate Demand Curve:
This reflects a period of Inflation / Reflation in an economy & the domestic currency falls on the Forex market whilst domestic Stocks tend to rise as GDP increases.
When an economy is operating to the Right of the Long Run Aggregate Supply Curve due to a shift in the Aggregate Supply Curve:
This reflects a Goldilocks economy & the domestic currency rises on the Forex market whilst domestic Stocks tend to rise also as GDP increases.
When an economy is operating to the Left of the Long Run Aggregate Supply Curve due to a shift in the Short Run Aggregate Supply Curve:
This reflects a period of Deflation in an economy & the domestic currency rises on the Forex market whilst domestic Stocks tend to fall as GDP decreases.
When an economy is operating to the Left of the Long Run Aggregate Supply Curve due to a shift in the Short Run Aggregate Supply Curve:
This reflects a period of Stagflation in an economy & the domestic currency falls on the Forex market whilst domestic Stocks tend to fall also as GDP decreases.
Video Times:
00:07 - How Inflation happens (AD Curve shifting right)
04:46 - How Deflation happens (AD Curve shifting left)
09:54 - How a Goldilocks Economy happens (SRAS Curve shifting right)
04:44 - How Stagflation happens (SRAS Curve shifting left)
#forex #stocks #forextradingcourse #forexcourse #financialeducation #fundamentalanalysis #forextradingforbeginners #forextrading #stockmarketforbeginners #macroeconomics #inflation #deflation #stagflation #goldilockseconomy
Full 100 video Stocks & Forex Trading Course available for FREE at https://www.getmetrading.com
Lesson 8 of 100 - Macro Fundamental Analysis Module (Macroeconomics)
Lesson Spreadsheet Download: https://getmetrading.com
This 100 video Stocks & Forex Trading Course is designed to provide traders and investors with everything they need to know to navigate the financial markets like a Professional trader and investor.
The Stocks & Forex Course is structured in four key parts to provide a complete financial education. The four key areas covered in this Course are:
1) Macro Fundamental Analysis (Lessons 1 to 59)
2) Fundamental Analysis of Stocks & Companies (Lessons 60 to 72)
3) Price Action & Technical Analysis (Lessons 73 to 83)
4) Advanced Risk Management Principles (Lessons 84 to 100)
Lesson 8 Overview:
In this lesson you will learn how Inflation, Deflation, Stagflation and a Goldilocks economy are caused due to shifts in the Aggregate Demand Curve & the Short Run Aggregate Supply Curve in relation to the Long Run Aggregate Supply Curve. Deviations to the left and to the right of the Long Run Aggregate Supply Curve represent temporary and unsustainable levels of output which cause either an Inflationary Gap (Positive Output Gap) or a Deflationary Gap (Negative Output Gap).
Understanding these 4 macroeconomic conditions is key when trading financial markets since each economic condition drives markets in a different way. It is the Macroeconomics and Fundamental Analysis which will enable you to predict market moves in Forex, Stock, Bonds & Commodities before they happen. You will learn exactly how to do this in this Stocks & Forex Course.
In this lesson we discuss the "Self Healing" mechanism of the markets, however, after the Great Depression in the US (1929 - 1939) it was argued that the "Self Healing" mechanism of markets does not always work. In response to the length of the Great Depression, Central Banks and Governments began to take a more active role in the economic recovery process though continuous interventions using Monetary Policy and Fiscal Policy respectively to manage the Aggregate Demand Curve both the the Left (to cool down the economy) and to the Right (to stimulate the economy).
STOCKS & FOREX MARKET DIRECTION KEY
When an economy is operating to the Right of the Long Run Aggregate Supply Curve due to a shift in the Aggregate Demand Curve:
This reflects a period of Inflation / Reflation in an economy & the domestic currency falls on the Forex market whilst domestic Stocks tend to rise as GDP increases.
When an economy is operating to the Right of the Long Run Aggregate Supply Curve due to a shift in the Aggregate Supply Curve:
This reflects a Goldilocks economy & the domestic currency rises on the Forex market whilst domestic Stocks tend to rise also as GDP increases.
When an economy is operating to the Left of the Long Run Aggregate Supply Curve due to a shift in the Short Run Aggregate Supply Curve:
This reflects a period of Deflation in an economy & the domestic currency rises on the Forex market whilst domestic Stocks tend to fall as GDP decreases.
When an economy is operating to the Left of the Long Run Aggregate Supply Curve due to a shift in the Short Run Aggregate Supply Curve:
This reflects a period of Stagflation in an economy & the domestic currency falls on the Forex market whilst domestic Stocks tend to fall also as GDP decreases.
Video Times:
00:07 - How Inflation happens (AD Curve shifting right)
04:46 - How Deflation happens (AD Curve shifting left)
09:54 - How a Goldilocks Economy happens (SRAS Curve shifting right)
04:44 - How Stagflation happens (SRAS Curve shifting left)
#forex #stocks #forextradingcourse #forexcourse #financialeducation #fundamentalanalysis #forextradingforbeginners #forextrading #stockmarketforbeginners #macroeconomics #inflation #deflation #stagflation #goldilockseconomy
