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This book provides the intelligent layperson with a concise yet comprehensive overview of the theory, history, and practice of money and banking, with a focus on the United States. Although the author considers himself an Austrian school economist, most of the material in this book is a neutral presentation of historical facts and an objective description of the mechanics of money creation in today's world.
The book is intended to be a reference for all readers, whether "Austrian" or not, and to bridge the gap by providing a crash course in the necessary theory and history while keeping the discussion tethered to current events.
— From the Introduction
- Part I: Theory and History
- Chapter 1: The Theory and Brief History of Money and Banking
- Chapter 2: A Brief History of the Gold Standard, with a Focus on the United States
- Chapter 3: The History and Structure of the Federal Reserve System
- Part II: The Mechanics
- Chapter 4: Standard Open Market Operations: How the Fed and Commercial Banks “Create Money”
- Chapter 5: Beyond the Fed: “Shadow Banking” and the Global Market for Dollars
- Chapter 6: Central Banking since the 2008 Financial Crisis
- Chapter 7: The Fed’s Policies Since the 2020 Coronavirus Panic
- Part III: Applications
- Chapter 8: Ludwig von Mises’s “Circulation Credit" Theory of the Trade Cycle
- Chapter 9: Monetary Inflation and Price Inflation
- Chapter 10: The Inverted Yield Curve and Recession
- Chapter 11: The Fed and the Housing Bubble/Bust
- Part IV: Challenges
- Chapter 12: Do the Textbooks Get Money and Banking Backward?
- Chapter 13: Crying Wolf on (Hyper)Inflation?
- Chapter 14: Keynesians on the Cause of, and Cure for, Depressions
- Chapter 15: The “Market Monetarists” and NGDP Targeting
- Chapter 16: Bitcoin and the Theory of Money
- Chapter 17: An Austrian Reaction to Modern Monetary Theory (MMT)