Bob Murphy Show Ep. 438 Bob Murphy on Why Christians Should Care About the Fed
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Aug 27, 2025 Alex Bernardo, host of the Protestant Libertarian Podcast, engages Bob Murphy in a thought-provoking conversation about the Federal Reserve and its significance for American Christians. They delve into the Fed's controversial origins and its impact on economic crises, including the Great Depression. The discussion highlights the difference between price inflation and money supply, critiques unconventional Fed policies from 2008, and examines the future of the U.S. dollar amid rising inflation. It's a stimulating dialogue urging faith-based awareness of monetary policy.
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What The Fed Actually Is
- The Federal Reserve is the U.S. central bank and acts as the bankers' bank holding accounts for commercial banks.
- Federal Reserve Notes are the currency in your wallet and the Fed has major regulatory power over banks.
How The Fed's Mandate Changed
- The Fed's goals evolved from lender-of-last-resort to a dual mandate of stable employment and stable purchasing power.
- The dual mandate was formalized after Nixon left the gold standard and aimed to smooth cycles while limiting inflation.
Inflation Is Money Expansion
- Economists originally defined inflation as expanding the money supply and bank credit, not just rising consumer prices.
- Mises warned that redefining inflation as price rises hides the true cause and hinders effective policy.
