Monetary Theory

Modern economists attempt to define money by correlating it with economic activity. As Austrian economists know, money is defined by its function as a medium of exchange.

While it wouldn’t solve everything, a gold audit would be a step towards sound money.

Prominent central bankers have given conflicting statements concerning gold. What soaring gold prices might indicate is that the world is now turning to gold.

A long-enduring myth about money is that we need a flexible or "elastic" currency for the economy to grow. Economist Jonathan Newman joins us to talk about why this has never been true. 

The quest for sound money is hardly a recent phenomenon. In 13th century Italy, two different gold monetary units competed with each other in the Medieval Italian economy.

In an attempt to explain business cycles, Milton Friedman came up with a plucked-string analogy. Like all Monetarist theories, however, this also had fatal flaws.

Joseph Salerno reviews Banking and Monetary Policy from the Perspective of Austrian Economics. Covering topics ranging from inflation targeting to cryptocurrency, this collection is indispensable reading for anyone interested in the Austrian monetary thought.

In examining the Austrian Regression Theorem of Money, Joshua Mawhorter takes on the Chartalist/MMT claim that government gives money its value. The Chartalist/MMT advocates lack a necessary cause-and-effect mechanism to prove their claims.

In examining the Austrian regression theorem of money, Joshua Mawhorter takes on the chartalist/MMT claim that government gives money its value. The chartalist/MMT advocates lack a necessary cause-and-effect mechanism to prove their claims.