Home Monetary Theory Season 1 Episode 2

The Gold Standard

Monetary Theory · Season 1 · Episode 2
In lecture two, we learn about the mechanics of a gold standard, focusing on how supply and demand for monetary gold determine money’s quantity and purchasing power. Dr. White explains the system’s self-correcting mechanism, where changes in demand spur adjustments in gold mining, restoring equilibrium and supporting long-run price stability. Comparing gold and fiat systems, the lecture highlights historically lower inflation, greater price predictability, and stronger fiscal discipline under gold. Finally, we review common objections about gold resource costs and consider why economists today generally oppose returning to a gold standard.

Episode Details

Air date, runtime, timezone, and episode position.

Season
1
Episode
2
Air Date
03/Mar/2026
Air Time
Runtime
69 min

Overview

Episode summary.

In lecture two, we learn about the mechanics of a gold standard, focusing on how supply and demand for monetary gold determine money’s quantity and purchasing power. Dr. White explains the system’s self-correcting mechanism, where changes in demand spur adjustments in gold mining, restoring equilibrium and supporting long-run price stability. Comparing gold and fiat systems, the lecture highlights historically lower inflation, greater price predictability, and stronger fiscal discipline under gold. Finally, we review common objections about gold resource costs and consider why economists today generally oppose returning to a gold standard.

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