Is there evidence the gold standard is good for America? Here’s what Prof. Domitrovic told Federal Reserve Chair Janet Yellen. For more on the gold standard, watch.
Bitcoin can be a little confusing–maybe you’ve heard that black markets like the Silk Road use it, or heard stories about its ever-fluctuating market value. Jerry Brito, law professor and Executive Director of Coin Center, gives you the basics about Bitcoin, from how it works, to how many there are, to who can benefit from […]
What causes economic crises? How can we prevent them? If you’re tired of drawing a blank when faced with these questions, you’re in luck. In our new program, Professor Tyler Cowen will walk you through the different theories of booms and busts, the reasoning behind major crises, and even how we can prevent them in […]
Bitcoin is nothing short of a currency revolution. It has changed how individuals spend their money, disrupted the way governments regulate money, and has the potential to completely eliminate physical currencies. Now, Jerry Brito, Senior Research Fellow at the Mercatus Institute, will explain why Bitcoin is already impacting the world for the better. Are you […]
What would happen if we didn’t have a central bank? Prof. Lawrence H. White explains that private banks would be able to circulate money by issuing notes and checks redeemable for coin. Trustworthy banks would make arrangements to accept each other’s notes and checks. Banks would have better incentives than the federal government to ensure […]
When economic troubles strike, policymakers are eager to do something to try to help the citizenry. But Prof. Lawrence H. White argues that government doesn’t necessarily know how to relieve economic woes, and in fact, often wastes and mismanages resources. Individuals in the market know better what they need in their circumstances, as economist Friedrich […]
The United States abandoned the gold standard completely in 1974. Professor Lawrence H. White discusses what the gold standard was, why it was abandoned, and whether abandoning it was a good idea. The gold standard meant that currency could be redeemed by banks for gold. The dollar had a set value that it retained. If […]
Professor Tyler Cowen explains that the Great Recession was the result of a number of different problems. While many economists tend to be dedicated to one particular model of downturns, Prof. Cowen finds evidence that elements from many different models played a factor in the recent recession. He briefly outlines how the following models could […]
Check out Prof. Cowen’s popular econ blog, Marginal Revolution. What role do interest rates play in the Austrian Business Cycle Theory? Professor Tyler Cowen explains the Austrian view that interest rates affect the way entrepreneurs invest. When government expansion of the money supply affects interest rates, Austrians argue that these interest rates give entrepreneurs […]
Check out Prof. Cowen’s popular econ blog, Marginal Revolution. Tyler Cowen touched on the topic of Wage & Price Stickiness in “Business Cycles Explained: Keynesian Theory.” In this video, he dives deeper into these core ideas. What makes wages sticky? In many economies, a large portion of the workforce is unionized and wages are […]
Check out Prof. Cowen’s popular econ blog, Marginal Revolution. Moving to the world of Monetarism, Tyler Cowen introduces Milton Friedman and evaluates the case for creating monetary stability. Monetarism claims that money supply fluctuations drive the rate of inflation and deflation. Notable monetarist Milton Friedman proposed that stabilizing monetary supply would prevent excessive highs and […]
Check out Prof. Cowen’s popular econ blog, Marginal Revolution. What is the central claim of Austrian Business Cycle Theory? Cowen boils down the Austrians’ boom-bust explanation: when the government manipulates the money supply, entrepreneurs get false ideas about the economy and make unsustainable decisions. When the central bank inflates the supply of money, the real […]
Check out Prof. Cowen’s popular econ blog, Marginal Revolution. Does the ‘Real Business Cycle Theory’ have a corner on reality? Cowen gives us a crash course. Real Business Cycle Theory holds shocks to technology are the real causes economic downturns. According to these “realists,” technology shocks emanate from events that prevent an economy from producing […]
Check out Prof. Cowen’s popular econ blog, Marginal Revolution. In the Keynesian corner, Tyler Cowen examines the Keynesian theory of the business cycle. According to the Keynesian model, substantial economic slumps come from falling aggregate demand—the sum of overall consumption, investment, and government spending within the economy. When Aggregate Demand falls, producers of goods and […]
Check out Prof. Cowen’s popular econ blog, Marginal Revolution. Big crises raise big questions. In the wake of the recent financial crisis, economists are asking million-dollar macro-economic questions: What causes market fluctuation? What causes business cycles? In this series of videos, Professor Tyler Cowen vets the contenders for the “top macroeconomic theory” title. Tune in […]