never as popular as milton freemont. certainly a heroic figure in my book with the us a tree began school. his -- one ever his not students but one of his close associates freed rick wouldn't nobel prize in 1974. he's an important character in the book. >> when they talk about the school what does that mean? >> the school is one of two major free market schools of economickings. >> the other school is the chicago school that milton and george developed in the '60s. and this is a more hard core school that advocates the gold standard, it is very suspicious of intervention by central banks, particularly the augusts tree began they say the manipulation of interest rates by the federal reserve can only have the disastrous effects. creating a boom bust cycle unsustainable and so a boom that's unsustainable that ineffortly will lead to a crash. it didn't surprise the economist that the real estate bomb could not last and mt. mark economic effects. >> you also feature paul in here. >> yes. >> he is not a member. >> no not at al

milton freemont had the example of saying think how complicates it is to deliver a pencil.ood, and the runner, and the met with tal and the graphite and paint and delivery and assembly and you gate pencil for $1 or whatever it is cost. markets can do that because the invisible hand says even though each participant is working for their own interest only and there's no central planners involved, that markets still work somehow to deliver that result. and indeed, there's a lot of evidence, i think it's clear to everybody that looking around the world that markets have played a tremendous role in creating the wealthy that we see in rich countries and in emerging that is markets that are becoming rich. so markets are an amazing thing, and getting students to appreciate what markets can do is an important part of teaching economic. that being said, the next level up is to understand that markets also have problems. there are market failure, there's monopoly, there's external, there's many other extra things that can go wrong in markets and understanding how to fix the problems i