Monetary Theory S01E02 · The Gold Standard

Overview

In lecture two, we learn about the mechanics of a gold standard, focusing on how supply and demand for monetary gold determine money’s quantity and purchasing power. Dr. White explains the system’s self-correcting mechanism, where changes in demand spur adjustments in gold mining, restoring equilibrium and supporting long-run price stability. Comparing gold and fiat systems, the lecture highlights historically lower inflation, greater price predictability, and stronger fiscal discipline under gold. Finally, we review common objections about gold resource costs and consider why economists today generally oppose returning to a gold standard.

Torrents

Subtitles

Episodes

1. 1 1. Money: Private or Public?2026-03-03 · 56mIn our introductory lecture, Dr. White delves into monetary theory by examining the fundamental question of whether markets or governments should provide money, drawing on historic
2. 2 2. The Gold Standard2026-03-03 · 1h 9mIn lecture two, we learn about the mechanics of a gold standard, focusing on how supply and demand for monetary gold determine money’s quantity and purchasing power. Dr. White expl
3. 3 3. Free Banking2026-03-03 · 1h 6mIn lecture three, we examine banks’ role in issuing money under a gold standard, explaining why people prefer banking services to direct gold transactions and what constrains banks
4. 4 4. The Fiat Standard2026-03-03 · 1h 5mIn lecture four, we explore fiat money—currency created by government decree rather than commodity backing—tracing its rise after wartime suspensions of the gold standard and the s
5. 5 5. Government in Money2026-03-03 · 1h 5mIn lecture five, we consider whether government intervention in monetary services improves public welfare, using concepts like market failure and Pareto efficiency. We evaluate pub
6. 6 6. Bank Fragility2026-03-03 · 1h 6mIn lecture six, we analyze arguments for government involvement in banking, particularly the claim that unrestricted banking is inherently unstable and prone to runs. We explore th
7. 7 7. Money Making2026-03-03 · 1h 6mIn lecture seven, we study the underlying causes of money growth and inflation, examining why central banks issue more money than is consistent with stable purchasing power. We del
8. 8 8. How to Secure Better Money2026-03-03 · 1h 10mIn 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 unde