Understanding Economics - Lesson 4: Money & Banking (Part 6/6 Fractional Reserve Banking)

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Common sense economic lessons for the interested layman. How a free market economy works, from an Austrian School perspective.
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Lesson Four: Money & Banking

An overview of money and the financial system. A discussion of how money emerges out of an intersubjective consensus to solve the various problems associated with barter; the functions and utility of using money; how prices are determined with money; determining the value of money itself; a discussion of the various types and functions of banking; ending with a discussion of the current system of fractional reserve banking and its effects on an economy. Interspersed throughout the lesson are refutations of 7 major monetary fallacies most often committed that if left unchecked, lead to devastating misunderstandings and misuses of economics.

Part 1 - The Emergence of Money: http://www.youtube.com/watch?v=RZvYDBsBuSc
Part 2 - The Functions of Money: http://www.youtube.com/watch?v=kIzSFSpJEmA
Part 3 - Price Theory with Money: http://www.youtube.com/watch?v=kQmsmZlWjIY
Part 4 - The Money Relation: http://www.youtube.com/watch?v=_xlYHfbgyG0
Part 5 - Intro to Banking: http://www.youtube.com/watch?v=jQ5zrzzy5kw
Part 6 - Fractional Reserve Banking: http://www.youtube.com/watch?v=OWVuOEHw7xs

View All Lessons: http://www.youtube.com/view_play_list?p=8F83C5C589FEB5FD
Website: http://ryansafner.com/understanding-economics/

Category:

News & Politics

Tags:

• money
• banking
• economics
• Austrian
• free
• market
• prices
• fractional reserve
• inflation
• deflation
• emergence
• gold
• silver
• fiat
• currency
• Federal
• Reserve
• Fed

[trollwarlord3]

this would be near perfect if you have not messed up the audio and some words.

[zalida100]

Great video series. Thanks V much. I can see that paying a loan is deflationary. I dont understand defaulting on loans as deflationary. I mean if the money was spent into the market and inflated the money supply, then the failure to remove it from the market means the money supply is not deflating. The loaned money is still in the general market.

Unless it just prevents the banks creating more money, but that would just be slowing the rate of inflation, not really deflating. I'm missing a bit:)

[t3hsauce]

This is great. A clear and concise explanation FRB. Favorited.