Monetary Theory Course 1 Episode 3 Free Banking 2026
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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.
- Released: 2026-03-03
- Runtime: 60 minutes
- Genre: Documentary, Talk
- Stars: Lawrence H. White
- Director: Lawrence H. White
