Monetary Theory

Bob Murphy examines Hazlitt’s key insights on monetary expansion, Cantillon effects, and the distinction between nominal and real variables.

Bob Murphy and Jonathan Newman take on the rising popularity of Modern Monetary Theory and explain why it stands in direct opposition to Austrian economics.

Governments have so corrupted money that we forget that sound money, by providing both fungibility and privacy, has been a defense against overreaching governments. While sound money is in the interests of citizens, governments have managed to destroy it.

Governments have so corrupted money that we forget that sound money, by providing both fungibility and privacy, has been a defense against overreaching governments. While sound money is in the interests of citizens, governments have managed to destroy it.

Joshua Mawhorter joins us to talk about how the fiat-money theories of Modern Monetary Theory and chartalism aren't supported by the historical facts. 

How much money does an economy need in circulation to function? Austrians believe that a growing economy does not need a growing supply of money, which sets Austrian economics apart from other schools of economic thought.

David Brady, Jr. reviews Jonathan Newman's latest children‘s book that explains money in a way that even modern adults can understand.

David Brady, Jr. reviews The Magic Coin by Dr. Jonathan Newman, a children‘s book that explains money in a way that even modern adults can understand.

Mainstream economists define inflation as the increase in an imaginary “price level” that is relatively neutral in its effects. Austrian economists, however, know better, as they realize that the effects of inflating the money supply are anything but neutral.

In a sound monetary system and a free market, overall prices would generally fall as the economy grows faster than the money supply, enabling people to purchase more with their money.