Money, Monopoly, and Market Intervention

IS_Econ_MMMI — with Robert P. Murphy

Cost: $69   Length: 8 Lectures
Format: Independent Study
Status: Open for enrollment
Program: Man, Economy, and State

About the Course

This is the final course in the Man, Economy, and State series after Praxeology Through Price Theory and Production and the Market Process, covering chapters 10 through 12. Students who take this course will gain valuable insights including Rothbard’s discussion of monopoly prices (chapter 10), a deconstruction of economic theories espoused by Keynes and Fisher (chapter 11), and a searing indictment of the state (chapter 12).

You can find a detailed outline of the topics explored in this course below:

Chapter 10: Monopoly and Competition
(study guide in PDF)

1. The Concept of Consumers’ Sovereignty (p. 629)
A. Consumers’ Sovereignty versus Individual Sovereignty (p. 629)
B. Professor Hutt and Consumers’ Sovereignty (p. 631)
2. Cartels and Their Consequences (p. 636)
A. Cartels and “Monopoly Price” (p. 636)
B. Cartels, Mergers, and Corporations (p. 643)
C. Economics, Technology, and the Size of the Firm (p. 645)
D. The Instability of the Cartel (p. 651)
E. Free Competition and Cartels (p. 653)
F. The Problem of One Big Cartel (p. 659)
3. The Illusion of Monopoly Price (p. 661)
A. Definitions of Monopoly (p. 661)
B. The Neoclassical Theory of Monopoly Price (p. 672)
C. Consequences of Monopoly-Price Theory (p. 675)
(1) The Competitive Environment (p. 675)
(2) Monopoly Profit versus Monopoly Gain to a Factor (p. 677)
(3) A World of Monopoly Prices? (p. 680)
(4) “Cutthroat” Competition (p. 681)
D. The Illusion of Monopoly Price on the Unhampered Market (p. 687)
E. Some Problems in the Theory of the Illusion
of Monopoly Price (p. 698)
(1) Location Monopoly (p. 698)
(2) Natural Monopoly (p. 702)
4. Labor Unions (p. 704)
A. Restrictionist Pricing of Labor (p. 704)
B. Some Arguments for Unions: A Critique (p. 716)
(1) Indeterminacy (p. 716)
(2) Monopsony and Oligopsony (p. 717)
(3) Greater Efficiency and the “Ricardo Effect” (p. 718)
5. The Theory of Monopolistic or Imperfect Competition (p. 720)
A. Monopolistic Competitive Price (p. 720)
B. The Paradox of Excess Capacity (p. 726)
C. Chamberlin and Selling Cost (p. 736)
6. Multiform Prices and Monopoly (p. 739)
7. Patents and Copyrights (p. 745)

Chatper 11: Money and its Purchasing Power
(study guide in PDF)

1. Introduction (p. 755)
2. The Money Relation: The Demand for and the
Supply of Money (p. 756)
3. Changes in the Money Relation (p. 762)
4. Utility of the Stock of Money (p. 764)
5. The Demand for Money (p. 767)
A. Money in the ERE and in the Market (p. 767)
B. Speculative Demand (p. 768)
C. Secular Influences on the Demand for Money (p. 771)
D. Demand for Money Unlimited? (p. 772)
E. The PPM and the Rate of Interest (p. 773)
F. Hoarding and the Keynesian System (p. 776)
(1) Social Income, Expenditures, and Unemployment (p. 776)
(2) “Liquidity Preference” (p. 785)
G. The Purchasing-Power and Terms-of-Trade Components in the
Rate of Interest (p. 792)
6. The Supply of Money (p. 798)
A. The Stock of the Money Commodity (p. 798)
B. Claims to Money: The Money Warehouse (p. 800)
C. Money-Substitutes and the Supply of Money (p. 805)
D. A Note on Some Criticisms of 100-Percent Reserve (p. 810)
7. Gains and Losses During a Change in the Money Relation (p. 811)
8. The Determination of Prices: The Goods Side and
the Money Side (p. 815)
9. Interlocal Exchange (p. 818)
A. Uniformity of the Geographic Purchasing Power of Money (p. 818)
B. Clearing in Interlocal Exchange (p. 821)
10. Balances of Payments (p. 822)
11. Monetary Attributes of Goods (p. 826)
A. Quasi Money (p. 826)
B. Bills of Exchange (p. 827)
12. Exchange Rates of Coexisting Moneys (p. 828)
13. The Fallacy of the Equation of Exchange (p. 831)
14. The Fallacy of Measuring and Stabilizing the PPM (p. 843)
A. Measurement (p. 843)
B. Stabilization (p. 847)
15. Business Fluctuations (p. 851)
16. Schumpeter’s Theory of Business Cycles (p. 854)
17. Further Fallacies of the Keynesian System (p. 859
A. Interest and Investment (p. 859)
B. The “Consumption Function” (p. 860)
C. The Multiplier (p. 866)
18. The Fallacy of the Acceleration Principle (p. 868)

Chapter 12: The Economics of Violent Intervention in the Market
(study guide in PDF)

1. Introduction (p. 875)
2. A Typology of Intervention (p. 877)
3. Direct Effects of Intervention on Utility (p. 878)
4. Utility Ex Post: Free Market and Government (p. 885)
5. Triangular Intervention: Price Control (p. 892)
6. Triangular Intervention: Product Control (p. 900)
7. Binary Intervention: The Government Budget (p. 907)
8. Binary Intervention: Taxation (p. 914)
A. Income Taxation (p. 914)
B. Attempts at Neutral Taxation (p. 919)
C. Shifting and Incidence: A Tax on an Industry (p. 927)
D. Shifting and Incidence: A General Sales Tax (p. 930)
E. A Tax on Land Values (p. 934)
F. Taxing “Excess Purchasing Power” (p. 937)
9. Binary Intervention: Government Expenditures (p. 938)
A. The “Productive Contribution” of Government Spending (p. 938)
B. Subsidies and Transfer Payments (p. 942)
C. Resource-Using Activities (p. 944)
D. The Fallacy of Government on a “Business Basis” (p. 946)
E. Centers of Calculational Chaos (p. 952)
F. Conflict and the Command Posts (p. 953)
G. The Fallacies of “Public” Ownership (p. 955)
H. Social Security (p. 957)
I. Socialism and Central Planning (p. 958)
10. Growth, Affluence, and Government (p. 962)
A. The Problem of Growth (p. 962)
B. Professor Galbraith and the Sin of Affluence (p. 973)
11. Binary Intervention: Inflation and Business Cycles (p. 989)
A. Inflation and Credit Expansion (p. 989)
B. Credit Expansion and the Business Cycle (p. 994)
C. Secondary Developments of the Business Cycle (p. 1004)
D. The Limits of Credit Expansion (p. 1008)
E. The Government as Promoter of Credit Expansion (p. 1014)
F. The Ultimate Limit: The Runaway Boom (p. 1018)
G. Inflation and Compensatory Fiscal Policy (p. 1021)
12. Conclusion: The Free Market and Coercion (p. 1024)
Appendix A: Government Borrowing (p. 1025)
Appendix B: “Collective Goods” and “External Benefits”:
Two Arguments for Government Activity (p. 1029)


All readings for this course are free, available online, and provided to students in a fully-hyperlinked syllabus.

Independent Study

Independent study courses are courses that were presented live in the past. These courses are now offered at a discount to anyone who wants to study independently. All courses include lecture recordings, slides, a complete hyper-linked syllabus, automatically-graded quizzes, and a discussion forum. Professors are not available for academic support for these independent study courses.

Sample Certificate of Participation

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