Austrian Economics: Political Economy, Public Policy and Monetary Economics (Session 3)

Sophy Ramírez  | 05 de noviembre de 2018  | Vistas: 29

Richard Ebeling introduces the lecture with the central banking and its functions. He also explains some individuals made some criticism against it, also proposed other ideas such as a system of market-based money and a private competitive banking system to replace the central banking.

A lot of times people will say that deficit expanded by government cause inflation. The answer to that is maybe yes, and maybe no it depends upon how that is financed.”

He explains the political and economic misuses as well as the abuses of the central banking. This institution worked with a gold standard system during the crisis in which people didn’t believe in. Richard highlights the effects that this practices had in Britain, France, Germany, Russia, and The United States.

Ebeling shares some of the views that the economist Ludwig von Mises had about the gold standard and free banking to emphasize in Friedrich Hayek's work on monetary and business cycle theory, and their ideas to end the government control of money and banking.

Money should be separated from the state, precisely because those in power can be used to serve their own issues and the circles of special interests that are aligned with who keep the political authority.”

After this, Ebeling exposes the ideas of the modern free banking school with their prominent members, exposes how it works the market competition limits, the behavior of the banks in this process and concludes with giving a program for the establishment of this system of free banking.