Lesson 12: Monetary Policy - Intercollegiate Studies Institute

Lesson 12 Lesson 12: Monetary Policy

Presented by: Dr. Tawni Ferrarini
Northern Michigan University

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Sound Money and Monetary Policy

You’ve probably heard the saying “money is the root of all evil.” It’s not true. Money is an instrument of exchange and the indispensable element of a prosperous society. Sound money stabilizes an economic system. It reduces uncertainty and encourages trust. Without it people disengage from economic activity and the economy suffers. People suffer. In this lesson we will explore why and how sound money is the root of human flourishing.

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HMW Lesson 12: Monetary Policy

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Money has only two functions: it is a medium of exchange and a unit of account.
- True
- False

The value of money and supply and demand are unrelated.
- True
- False

Monetary stability is essential for economic progress.
- True
- False

Because money is used in virtually all economic transactions, it has a powerful effect on economic activity. The lesson that the history of money supply teaches is that to ignore the magnitude of money supply changes is to court monetary disaster.

Anna J. Schwartz

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Sound Money and Monetary Policy, Part 3 with Tawni Ferrarini

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The Impossible Trinity - 60 Second Adventures in Economics (The Open University)

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What is the Gold Standard? (Prof. Lawrence H. White with Learn Liberty)

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Gwartney et al., Common Sense Economics, pp. 78-84

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Ludwig von Mises, The Theory of Money and Credit, IV.21.1 - IV.21.48

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Jeffrey A. Miron, “Should Policy Attempt to Avoid Financial Crises?” pp. 391-399

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Anna J. Schwartz, “Money Supply,” The Concise Encyclopedia of Economics

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Christina D. Romer, “Business Cycles,” The Concise Encyclopedia of Economics

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Lesson 12 Lesson 12: Monetary Policy

Sound Money and Monetary Policy

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