Adumbration

These two episodes discuss gold standard alternatives to fiat money as currently handled by the Federal Reserve, the context of fractional reserve banking, Fed interest rate actions effect on the money supply, and related topics. The discussion of the Bear Stearns bailout, near the conclusion, also stands out. Roberts poses the good questions of "why" and "how".

Gold, the Fed, and Money (6/2/2008) - Gene Epstein, Barron's economics editor, talks about the virtues of the gold standard relative to fiat money. Epstein argues that privately issued money, backed by gold, would lead to an economy with much greater price stability and fewer and milder recessions.

The Fed, Money, and Gold (5/19/2008) - Allan Meltzer of Carnegie Mellon University talks about what the Fed really does and the political pressures facing the Chair of the Fed. He describes and analyzes some fascinating episodes in U.S. monetary history, discusses the advantages and disadvantages of the gold standard and ends the conversation with some insights into recent Fed moves to intervene with investment banks. This is a wonderful introduction to the political economy of the money supply and central banks.