Money and Banking - Lecture 26 HD

deficit financing, business cycles, the hangover theory of business cycles, the credit cycles, overinvestment, malinvestment, liquidations, budget, fiscal budget, budget balance, budget deficit, budget surplus, crowding-out, origins of central banking, Bank of England, BOE, origin of BOE, birth of BOE, early history of BOE, legal tender laws.

[@asmarlitvinjabarova4122]

Thank you so much for uploading your lectures on RUclips. They’re immensely helpful!!

[@ricardasrazgaitis4229]

Great teacher!

[@donttread5414]

when the commercial banks buy gov bonds, are the commerical banks "creating" money out of thin air, similiar to how when they loan out money or when the central bank buys bonds?

[@Rizzgod888]

The central bank buys the old bonds, that'll create deposits at the commercial banks( That is the monetary base ). Then commercial banks will loan to the government through the fractional reserves system. It's the central bank that prints the money to buy the old bonds or increases its balance sheet first. Btw the book is The mystery of banking by Rothbard.

[@donttread5414]

what book is the lecture based on? Would like to read it

[@orbeengaapine2740]

If the government and monetary authorities can do all these then why do they need to task people again.