My latest Macro Musings podcast is with Will Luther, assistant professor of economics at Kenyon College and an adjunct scholar with Cato's Center for Monetary and Financial Alternatives. Will joins me to discuss the origins of money and its implications for new cryptocurrencies today. It was a fascinating conversation throughout on a very important topic.
There are two theories for the origin of money. The first theory, the state theory of money, posits governments are needed to provide credibility for money as a medium of exchange. The second theory, the spontaneous order theory, argues market actors will arrive at an acceptable medium of exchange on their own. Drawing on historical examples--including unofficial dollarization, the Somalia Shilling, and Russian Vodka--Will argues that both theories can be useful in explaining the emergence of money depending on place and time. We then turn to how these theories shed light on the rise of cryptocurrencies and blockchain technology.
You can listen to the podcast via iTunes or Sound Cloud, or through the embedded player. And remember to subscribe since more guest are coming!
The Monetary Mechanism of Stateless Somalia--Will Luther
Bitcoin is Memory--Will Luther