Banking and Money

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.