Monetary Theory

Bob explains the contributions of Menger and Mises to monetary theory. He then deals with the critique of David Graeber, who argues that the economists' story of the origin of money is bogus.

What we may call the “spending illusion” is perhaps the gravest error in the history of economic thought and has been deeply embedded in economics since the early twentieth century.

Recorded in front of a live audience at the 2024 Mises University, Bob discusses recent market turbulence with Mark Thornton.

There is no general social benefit from government spending regardless of how it is financed.

Recorded at the Mises Institute in Auburn, Alabama, on August 1, 2024.

What we may call the “spending illusion” is perhaps the gravest error in the history of economic thought and has been deeply embedded in economics since the early twentieth century.

Jason Purcell joins Bob to discuss his historical analysis of yield curves (in both UK and US) going back to the 1870s, which shows that central banks do indeed manipulate short-term interest rates.

Bob critiques MMT godfather Warren Mosler's recent interview where he argued that the Fed rate hikes have been fueling the strong economy.

A state without money or a state that must tax its citizens to raise money for its wars is necessarily limited in its imperial ambitions. Keep in mind that this is only a problem for the state.

Stephanie Kelton, the most visible promoter of MMT, is being derelict in her academic duties by not replying to Per Bylund’s critique of her theories in the Quarterly Journal of Austrian Economics.