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For this last video and this last
session, I'm not going to give

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you any exercises to do at home.

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This video is going to be composed
of two parts.

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First part is going to be inflation,
I'm going to carry on with what

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I started last week.

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And the second part will be a kind
of correction of the test I gave

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you two weeks ago.

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Inflation, so last time we defined
the term inflation and we understood

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it as when the prices go up,

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prices of goods and services go
up and the salaries do not really move.

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So this is what we call inflation.

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And then we also mentioned the
fact that the institution in charge

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of looking at the inflation rate
in Europe is the European Central Bank.

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Inflation is defined or determined
through the CPI, which is the consumer

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price index.

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So it is the consumer price index
that tells us if there is inflation

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or if there is no inflation.

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Two verbs I would like you to keep
in mind when dealing with inflation.

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The verb to raise and the verb to rise.

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The difference between these two
verbs is that raise is followed

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by what we call in the French language
COD.

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So it means that we say to raise
something while the verb rise is

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not followed by anything.

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So we have to be very careful with
the use of these two verbs,

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especially when dealing with inflation.

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So now we are going to think about
what could explain the rise of

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the inflation rate.

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There are different things.

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I mentioned some of them last week.

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I said that the cost of fuel is
one of the reasons.

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After the pandemic also,
in some Western countries,

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we experienced a rise of the inflation

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rates due to the fact that the government
had given money to the population,

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to the citizens.

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So they had money and they had
the possibility to buy and to spend

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money.

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This has to do with the notion
of supply and demand.

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So when the demand is very high,
the prices are going to go up,

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obviously.

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And when the demand is very low,

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the prices are going to go down.

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So these are things that we have
to keep in mind when dealing with

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the notion of inflation.

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So now, what the European Central
Bank tends to do to control the

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inflation rate when it is too high?

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It raises the interest rates.

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This is one of the tools used by

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the European Central Bank.

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Let's try to focus on this phenomenon,
which means that by raising the

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interest rates, we reduce the demand,

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because it's very expensive.

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For the investors, it's not
interesting.

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So the demand is going to decline.

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And if the demand declines,
it means that supply is going to

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increase.

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And that will have the effect, or
the impact that will come from

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that is that the prices are going
to go down.

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And this is the main tool used
by the European Central Bank to

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control the inflation.

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I invite you to read the last document
I'm sending you.

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It's just reading.

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I'm not going to ask you any question
on that.

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It's just for you to have a better
understanding of what I am talking

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about.

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Now, I'm going to speak about your
assessment and give you some kind

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of correction of the different
exercises.

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The first exercise was about
vocabulary.

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The first term I wanted
you to find out was the term GI Bill. Here I was referring to 1944 when the soldiers who had taken part in the Second World War,

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where given the possibility to
go to university, and it was all

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paid for them.

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So this is the GI bill.

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This is what I was referring to.

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Loan is the money you contract
from the bank.

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And when you want to buy,
for example, a house or when you

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want to buy a house,
it's more a mortgage.

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But when you want to go to university
and you cannot pay your tuition fees,

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so you get the loan,
it means that you will have to

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pay back the bank later with interest
rates.

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Tuition fees is the money that
you pay to join a university,

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to be enrolled in a university.

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So that was the vocabulary word

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number three.

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So first one was G.I Bill explained
this one.

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Loan, I explained that one as well.

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And tuition fees, I just explained it.

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GDP, gross domestic product.

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So I define it as all the wealth

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produced in a country at a given
period.

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That's the definition I gave you.

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So I wanted you to say something
similar in your papers.

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Higher Education Act,
this one refers to 1965.

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It is under the presidency of Johnson,
first Kennedy and then Johnson.

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And the objective with this act
was to bridge the gap between the

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rich and the poor in terms of having
access to university.

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So they are going to encourage

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the working class to go to university,

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helping them with grants,
with different systems,

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and more specifically with having
access to loans.

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Okay.

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Regarding the two questions,
you also had two questions to answer.

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So the first question was,
what are the consequences of the

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US students' debt?

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One figure to remember was that
the student debt is at $1.6 billion,

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trillion dollars.

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The consequences is that young
people enter adult life a bit later,

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they delay getting married,
they delay getting a mortgage,

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and so on.

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So this is what I wanted to hear
for this answer.

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And the second question was about,
are profit universities an issue?

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Are for-profit universities an issue?

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Yes, it is an issue.

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The thing is that it brings this
spirit of business in education

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and you will have lots of universities,
let's say, accepting students just

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for the money and also that is
going to contribute to more students

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being in debt.

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So it was not something very positive
in the sense that it's more business

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that is focused here and it enables,
of course, more students to have

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access to university,
but at the same time,

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you will have a rise of the tuition

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fees and more students who will
be in debt.

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So this is roughly what I wanted
to hear for this question.

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The last exercise was,
of course, the graph.

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And the graph was about the rise

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of tuition fees.

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So it was about the consumer price
index.

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So if we look at the curve,
it seems that there is a difference

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between the way the tuition fees
increased since 1978 up to 2010.

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And so what we could have said
for this one, we could have said

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that it seems that the graph here

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tells us that the cost of tuition
and fees skyrocketed compared to

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the prices of other products or other,

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let's say, consumer price index.

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So this is what I wanted to hear
and I wanted also for you to use

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the supporting sentences giving
me the figures, illustrating how

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it had increased.

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So that's all for today.

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Thank you for listening and see
you soon.

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Thank you very much.