Tuesday, April 28, 2020

Why MMT? A discussion with Warren Mosler — Richard Murphy

Warren is amazing in his ability to cut to the quick in a sentence or two.

Tax Research UK
Why MMT? A discussion with Warren Mosler
Richard Murphy | Professor of Practice in International Political Economy at City University, London; Director of Tax Research UK; non-executive director of Cambridge Econometrics, and a member of the Progressive Economy Forum


Matt Franko said...

R: What, then is the role of central bankers?

W: Setting the policy rates. ****(They do a lot more than that they also regulate bank leverage and bank non risk asset requirement)****

R: And what is the role government come to that? And how do we stop there being too much money?

W: Depends on the definition of 'money'. I suspect it's more about too much spending? That can be addressed by cutting govt. spending or cutting private sector spending by various means including govt. spending cuts, tax increases, increased lending standards, etc. etc.

***** in ww2 US increased savings to reduce consumption ****

Matt Franko said...

This isn’t true:

“ W: The public debt is the amount spent by the government .that has not yet been used to pay taxes, and remains outstanding until used to pay taxes in the form of cash, reserves, and securities. Treasury securities are nothing more than time deposits of the currency at the central bank.”

Govt debt securities have been issued in excess of spending and TGA has increased by > 600b in last 4 weeks..

S400 said...

What is not true in Warrens statement?