Monday, October 24, 2016

Dr. Jeffrey Herbener: Demystifying The Fed
Mises Media .. Even well-read fans of Austrian economics often have a hard time understanding & conceptualizing what the Fed really does .. Dr. Jeffrey Herbener on the basic blocking & tackling of central bank mechanics: how commercial bank reserves are created, the difference between the monetary base & the money supply, & how the Fed Funds rate impacts lending and the structure of production .. how Austrian business cycle theory describes the distortions created by artificially low interest rates, how interest rates ought to operate as price signals .. how early recipients of newly created money and credit benefit in ways that ordinary citizens don't. .. 26 minutes

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