â€œConfoundingly to me, people have come to be quite accepting of the value attached by fiat to these pieces of paper we call currency,â€ says Jim Grant, whoâ€™s the editor of Grantâ€™s Interest Rate Observer and the author of The Forgotten Depression: The Crash That Cured Itself.

â€œAre prices meant to be imposed from on high, or discovered by individuals acting spontaneously in markets? The readers and viewers of Reason know the answer to that but theyâ€™re regrettably in the minority."

Grant sat down with Reason magazine editor-in-chief Matt Welch on Tuesday to discuss the underlying causes of the recent market turbulence, why we donâ€™t really â€œhave interest rates anymore,â€ and how the classic jazz song â€œItâ€™s Only a Paper Moonâ€ provides a fitting metaphor for the equities market.

Seven minutes.

Shot by Jim Epstein and Anthony Fisher. Edited by Epstein.

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