Monetary Theory Season 1 Episode 3

Overview:
In lecture three, we examine banks’ role in issuing money under a gold standard, explaining why people prefer banking services to direct gold transactions and what constrains banks without legal limits. We explore fractional-reserve banking as a voluntary system where banks provide payments and interest while lending a portion of deposits. The lecture concludes by showing how market forces—adverse clearings, reserve losses, and the price-specie flow mechanism—naturally limit money creation, allowing competitive banking systems to self-regulate without central bank oversight.

Release Date : 2026-03-03

Genre : Documentary, Talk

Duration : 66 menit

Rating : ⭐ 0/10 (0 votes)

Actors : Lawrence H. White