In this episode, USC professor Nik Bhatia answers questions from economics student Demian Schatt, exploring how Bitcoin could fit within modern fiscal and monetary policy frameworks. Demian asks thought-provoking questions about operating under a Bitcoin standard during recessions, such as how governments could stimulate the economy without increasing the money supply. Nik explains the role of fiscal policy, free markets, and Bitcoin’s deflationary nature in supporting sustainable growth, while contrasting it with traditional monetary systems. He also addresses inflation, quantitative easing, liquidity, and Bitcoin’s potential as a reserve currency, demonstrating how Bitcoin could transform the future of finance. The Bitcoin Layer is a bitcoin and global macroeconomic research firm. The Bitcoin Layer is proud to be sponsored by Unchained, the leader in Bitcoin financial services. Unchained empowers you to take full control of your Bitcoin with a collaborative multisig vault, where you hold two of three keys, and benefit from a Bitcoin security partner. Purchase Bitcoin directly into your cold storage vault and eliminate exchange risks with Unchained's Trading Desk. Unchained also offers the best IRA product in the industry, allowing you to easily roll over old 401(k)s or IRAs into Bitcoin while keeping control of your keys. Don’t pay more taxes than you have to. Talk to us today. Visit https://thebitcoinlayer.com/unchained and use code TBL for $100 off when you create an account. Try Stamp Seed, a DIY kit that enables you to hammer your seed words into a durable plate of titanium using professional stamping tools. Take 15% off with code TBL. Get your Stamp Seed today! https://www.stampseed.com/shop/titanium-seed-phrase-storage-kits.html?utm_source=substack&utm_medium=email Subscribe and turn on notifications for TBL on YouTube. Subscribe to TBL’s research letter: https://thebitcoinlayer.com/subscribe Follow TBL on X: https://twitter.com/TheBitcoinLayer Subscribe to The Bitcoin Layer on your favorite podcast platform. Join the official TBL channel on Telegram: https://t.me/thebitcoinlayerofficial Use code TBLYT10 for 10% off all The Bitcoin Layer Merch at http://TheBitcoinLayer.com/merch Block Height 870941 Contribute to The Bitcoin Layer via Lightning Network: [email protected] Nik Bhatia's Twitter: https://twitter.com/timevalueofbtc Creative Director Matthew Ball's Twitter: https://twitter.com/matthewrball #TheBitcoinLayer #NikBhatia #Bitcoin #BitcoinEconomics #FiscalPolicy #MonetaryPolicy #BitcoinStandard #DeflationaryEconomy #SustainableGrowth #ReserveCurrency #EconomicStimulus #BitcoinFuture #FreeMarkets #EconomicQuestions #RecessionSolutions #BitcoinAndInflation #QuantitativeEasing #Liquidity #FinancialTransformation #BitcoinAsMoney #EconomicFrameworks #BitcoinReserve #BitcoinEducation #FutureOfFinance #ModernEconomics #BitcoinVsFiat #EconomicsForStudents #Bloomberg #Analysis #Charts #Tradingview #InvestmentStrategy #MarketWatch #StockMarket #PassiveInvesting #IndexFunds #FinancialMarkets #MarketWatch #FreeMarket #FreeMarkets #Markets #USTreasury #TreasuryBills #BalanceSheet #FED #Debt #Inflation #Statistic #Rates #Interest #Asset #Bitcoin #Dollar #Sats #BTC #Gold #Market #Trading #Currency #Crypto #Analysis #Investment #News #Finance #Education #Blockchain #Mining #BitcoinMining #macro The Bitcoin Layer and its guests do not provide investment advice. Subscribe to The Bitcoin Layer on Soundwise