Discussion — Lectures 1 & 2

Welcome to Money and Banking!

In addition to introducing ourselves, introducing the course, and sharing our intentions for working through the material (again), we will discuss Lecture 1: The Four Prices of Money and Lecture 2: The Natural Hierarchy of Money.

• Lecture 1 Notes
• Lecture 2 Notes

Lecture 1 provides motivation, context, and themes for the course. It introduces the use of balance sheets (T accounts) as an analytical tool and highlights the key concept of liquidity—as distinct from solvency—in determining whether an economic actor can continue operating without going bankrupt.

Lecture 2 gives a big-picture overview of the whole course. Money and credit exist as a hierarchical structure based on a monetary standard. As we continue on, most of what we learn will be fleshing out the structure and mechanics of the hierarchy. You may find yourself coming back to this lecture again and again to reorient yourself.

• Lecture 1 Discussion Thread
• Lecture 2 Discussion Thread
• Money and Banking Summer 2023 Reddit Master Thread