Discussing Experimental Economics with Vernon Smith

Fritz Thomas interviews Vernon L. Smith regarding the role that experimental economics play within the economic theory.  Smith describes how these observation exercises contribute to a better understanding of the economic phenomena, as well as how such experiments are useful to predict market behaviors and their main structures.  He elaborates on how these economic trials relate to the philosophy of the Austrian School of Economics.  Finally Smith explains, based on his research, the causes of economic bubbles in markets and how they emerge from specific monetary policies imposed by central authorities.