Economics Explored Why fiat money means higher inflation & why a radical Reserve Bank review is needed w/ Darren Brady Nelson - EP179
In his recent Spectator Australia article, Darren Brady Nelson argues for a radical, not a reserved review of Australia’s central bank, the Reserve Bank of Australia (RBA), which he describes as reckless. In Economics Explored episode 179, Darren provides an Austrian economics perspective on central banks, fiat money, and inflation. Show host Gene Tunny wraps up the episode with a discussion of the historical evidence on different monetary systems and inflation, evidence which confirms economies with fiat money are much more inflation prone. Gene then discusses whether a return to the gold standard would be desirable.
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What’s covered in EP179
- Darren’s thoughts on the current review of the Reserve Bank of Australia [1:46]
- How the RBA interprets the stability of the currency objective [6:54]
- What is the Austrian School? [10:19]
- Would the Austrians recommend abolishing the central bank? [21:08]
- The Bank of England’s report on modern banking [25:54]
- The need for a broader review of the Reserve Bank of Australia [30:35]
- Fiat money systems are much more prone to inflation than commodity money systems [34:20]
Links relevant to the conversation
Darren’s bio on the Economics Explored website:
https://economicsexplored.com/regular-guests/
Darren’s opinion piece on the Spectator Australia website:
The RBA (reckless bank of Australia) needs a radical, not reserved, review
Bank of England paper on money creation:
Money creation in the modern economy | Bank of England
Minneapolis Fed paper on fiat money, commodity money, and inflation:
Minority report of the Gold Commission, co-authored by Ron Paul:
The Case for Gold: Minority Report of the US Gold Commission 1982
Alan Greenspan’s autobiography discusses his advice to President Reagan regarding gold:
Another great book on Greenspan which discusses Friedman’s views too:
The Man who Knew: The LIfe & Times of Alan Greenspan*
*You can help support the show by buying a copy of either book via the links above.
Credits
Thanks to Obsidian Productions for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au.
Full transcripts are available a few days after the episode is first published at www.economicsexplored.com. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.