Prompt Cast
The Challenges of Determining and Controlling the World's Money Supply
TLDR The podcast explores the different measures of money supply, including the M0 and M2 money supplies, and discusses the difficulties in determining the total amount of money in the world. It also examines the extreme case of hyperinflation in Zimbabwe and the pros and cons of a universal worldwide currency.
Timestamped Summary
00:00
The hosts discuss the different measures of money supply, including the M0 money supply, which is the amount of money divided among all Americans, estimated to be $3,800 per person.
04:24
The M0 money supply, which is the amount of physical cash in the world, was $1.2 trillion in July 2013, equivalent to $3,800 for every American.
08:52
The M2 money supply, which includes money market funds, savings accounts, and smaller CDs, was $10.5 trillion in July 2013, representing virtually all of the American money in the world.
13:39
Not every country has a central bank like the Fed, which makes it difficult to determine how much money is in the entire world and control their economy, as seen in the extreme case of hyperinflation in Zimbabwe.
17:53
The extreme case of hyperinflation in Zimbabwe resulted in an estimated annual inflation rate of 516 quintillion percent, leading to the abandonment of their currency and the adoption of foreign currencies like the South African Rand and the U.S. dollar.
22:08
A universal worldwide currency has been suggested by economists like John Maynard Keynes since World War II, and although there are pros such as eliminating hyperinflation and currency manipulation, there are also drawbacks to consider.
26:16
The drawbacks of using a universal currency include the inability to manipulate currency to stimulate the economy and the challenges of having a universal body to oversee the currency.
30:28
The podcast concludes with a discussion about the differences between the United States, Canada, and Mexico, and then transitions into ads and acknowledgements.
34:52
The hosts thank listeners for sending in various items and acknowledge their appreciation for the support.
Categories:
Society & Culture
