Monetary Theory

Episode Synopsis

In 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.