Money, Banking, & Public Finance – Intro to Political Economy, Lecture8


Richard Salsman is a Visiting Assistant Professor of Political Science

Introduction to Political Economy is a self-contained and nontechnical overview of the intellectual history of political economy, the logic of microeconomics, and the definitions used in macroeconomics. It introduces the notion of a political economy, emphasizing the moral and ethical problems that markets solve, and fail to solve. This lecture is taught by Richard Salsman, Ph.D..

1. Money
— functions & forms
— metal, paper, plastic and bits
— market-based versus fiat-based
2. Banking
— financial intermediation
— types; depository, commercial, investment
— free banking versus central banking
3. Public Finance
— funding of government spending
— taxing, borrowing and money-creation
— deficits, debts and unfunded entitlements
— fiscal rectitude versus fiscal profligacy

Selgin, George, and Lawrence White. 1987. “The Evolution of a Free Banking System.” Economic Inquiry. Volume 25, Issue 3, pages 439–457.
The Importance of the Dollar as World Currency (Podcast with Barry Eichengreen) (
Surowiecki, James, “A Brief History of Money,” (

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Produced by Shaun King, Duke University Department of Political Science Multimedia Specialist


Simon Says August 14, 2019 - 12:52 AM Reply
dsm December 20, 2019 - 3:35 PM

The first bit is ok, but he's wheezing and reading definitions – hardly what you would expect Duke tuition money would buy. By itself I guess that's fine. But most of the rest he's just reasoning from price changes or assuming causation from overly simplistic correlations. This lecture is kind of embarrassing tbh and it wouldn't pass the sniff test in university economics departments.

Don't take my word for it: literally go look at Mishkin OR Cecchetti's "Economics of Money & Banking" textbooks, Mankiw's (intermediate) "Macroeconomics" textbook, or any number of substitute textbooks.

Susan St. James August 9, 2020 - 3:29 PM

Valuable explanations.

Chetana Sin October 4, 2020 - 8:11 AM


Chetana Sin October 4, 2020 - 8:16 AM


Michael Lewis December 25, 2020 - 7:04 AM

Lose some weight. It will be good for you.

Max R February 20, 2021 - 5:13 PM

"originally there was barter"

source? i thought this was an ivy league school. bartering is a biproduct of a monetary policy and does not exist in nature where humans give freely to one another.

a failure to study basic anthropology, a failure to understand the human, is a failire to understand economics.


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