Videos on how banks work and how money is created.
Lectures
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Lecture 1 - Banking 5: Introduction to Bank Notes
Introduction to bank notes (which you are more familiar with than you realize).
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Lecture 2 - Banking 6: Bank Notes and Checks
More on how bank notes and checks can be used.
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Lecture 3 - Banking 7: Giving Out Loans Without Giving Out Gold
How banks can give out loans without ever giving out gold.
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Lecture 4 - Banking 8: Reserve Ratios
How reserve requirements limit how much lending a bank can do.
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Lecture 5 - Banking 9: More on Reserve Rations (Bad Sound)
Seeing how reserve ratios limit how much lending I can do.
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Lecture 6 - Banking 10: Introduction to Leverage (Bad Sound)
What leverage is. Why it is is good or bad. Leverage and insolvency.
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Lecture 7 - Banking 11: A Reserve Bank
Introduction to the idea of a reserve bank.
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Lecture 8 - Banking 12: Treasuries
Introduction to government debt and treasuries. What it means when we say that Federal Reserve Notes are issued by the Reserve bank but are an obligation of the Government.
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Lecture 9 - Banking 13: Open Market Operations
Tools of the Central Bank to increase the money supply.
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Lecture 10 - Banking 14: Fed Fund Rates
How open market operations effect the rate at which banks lend to each other overnight.
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Lecture 11 - Banking 15: More on the Fed Fund Rates
More on the mechanics of the Federal Funds rate and how it increases the money supply.
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Lecture 12 - Banking 16: Why Target Rates vs. Money Supply
The rationale for targeting interest rates instead of directly having a money supply target.
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Lecture 13 - Banking 17: What Happened to the Gold
Getting off the gold standard. A short discussion of the meaning of wealth.
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Lecture 14 - Banking 18: Big Picture Discussion
Pros and Cons of various banking systems. More on gold.
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Lecture 15 - The Discount Rate
The discount rate and window. Lender of last resort.
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Lecture 16 - Purchase Agreements (Repo Transactions)
Mechanics of repurchase agreements (repo transactions/loans).
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Lecture 17 - Federal Reserve Balance Sheet
Analysis of the federal reserve balance sheet as of Feb 2007.
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Lecture 18 - Fractional Reserve Banking Commentary 1
Understanding the weak points of Fractional Reserve Banking.
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Lecture 19 - FRB Commentary 2: Deposit Insurance
More on the weaknesses of fractional reserve banking. The FDIC and deposit insurance and its side effects.
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Lecture 20 - FRB Commentary 3: Big Picture
Summary of thoughts in last two videos. Discussion of why Fractional Reserve Banking is a subsidy to banks and allows them to arbitrage the yield curve.


