Monetary Theory

The velocity of money doesn’t have a life of its own. It is not an independent entity and, hence, it can’t cause anything. Contrary to popular thinking, money does not circulate. Money always belongs to somebody.

Alexander Salter and Joshua Hendrickson argue that the Fed's actual institutional role is to backstop U.S. dollar hegemony.

Bob sits down with economist Emmanuel Maggiori to discuss his new book that engages MMT on its own terms, drawing on the MMTers' own textbook, papers, and responses to critics.

This week, Bob walks through three thought experiments to show how expectations of future supply changes ripple into present prices and production decisions in ways that purely mechanical monetary frameworks like MV=PQ can't capture.

Bob sits down with Dr. Jonathan Newman to discuss his Mises Academy course for homeschooling families based on Lessons for the Young Economist, using it as a starting point to walk through the full Austrian case against socialism.

Governments take valuable things like paper and minerals, stamp something on them, and call them money, in the process rendering these things almost worthless. Something is wrong with this picture.

Governments take valuable things like paper and minerals, stamp something on them, and call them money, in the process rendering these things almost worthless. Something is wrong with this picture.

From Monetarists to advocates of modern monetary theory, government edicts give money its value. Austrian economists from Menger to Mises to Rothbard know better.

Bob responds to a new working paper from the Geo-chartalism project, which claims to offer a complete theory of the price level by combining insights from Menger, Cantillon, and Warren Mosler.

In 1971, when the last formal link between the dollar and gold was severed, more than a monetary system collapsed.