Season 1 • Episode 8
LatestIn our eighth and final lecture, we discuss the challenges of maintaining sound money in a fiat monetary system and examine potential solutions to prevent fiscal problems from undermining the dollar's purchasing power. We delve into the debate over central bank rules versus discretion, analyzing why monetary policy cannot permanently reduce unemployment or boost real economic growth. Dr. White concludes our course by evaluating various monetary policy targets, including inflation targeting versus nominal GDP targeting, and considers alternative approaches such as Hayek's proposal for competitive currencies and the potential role of Bitcoin as a monetary standard.
In Monetary Theory, a nine-hour course, Dr. Lawrence White explores the debate between market-based and government-controlled monetary systems, combining theory with historical evidence from gold standards to modern fiat currencies. We examine how money can emerge through market forces, the mechanics of fractional-reserve banking, and how central banks influence inflation. The course also addresses banking stability, market failure arguments, and the causes of inflation, including seigniorage. It concludes by evaluating monetary policy rules, inflation targeting, and alternatives like Bitcoin, and asks whether sound money requires commodity backing or if proper institutional design can achieve stability in fiat systems.
Creator
Lawrence H. White
US
