Starökonom Warren Mosler: “Warum ist die EZB nicht in Athen?“

(https://kurier.at/wirtschaft/mmt-erfinder-warren-mosler-warum-ist-die-ezb-nicht-in-athen/400494373)

Itzulpena ingelesera: https://translate.google.es/?hl=en

Star economist Warren Mosler: "Why is not the ECB in Athens?"

The founder of the much cited MMT monetary theory and impetus of the US Democrats over the euro, Austria's budget and climate change.

(i) Mosler:  inbertsio fondoak, kirol autoak, katamaranak, teoria ekonomikoa

Such a CV is actually sufficient for three biographies: Warren Mosler (69) has founded hedge funds and amassed a fortune on Wall Street. He built his own super sports cars and designed catamarans for almost three decades. He has (unsuccessfully) applied for offices in the US, including the Presidency (2012), a seat in Congress, and Governor of the Caribbean US Virgin Islands, where he lives.
And he has incidentally designed an economic theory that is now on everyone's lips.

(ii) Diru Teoria Modernoa (DTM). Mosler Viena-n

What used to be known as Mosler Economics was euphorically adopted as the "Modern Monetary Theory" (MMT) from the left-wing Democratic Party of the United States. The most well-known proponent is Professor Stephanie Kelton, who advises both the veteran and presidential candidate Bernie Sanders, and the recent Congresswoman Alexandria Ocasio-Cortez: the new female shooting star from New York wants a state job guarantee and the fight against climate change (Green New Deal).
Of course, Warren Mosler has taken the lead, as Kelton frankly admits. In 1997 she had dropped the penny when she read a book by the hedge fund manager. The US economist is currently invited by the newly founded association MMT Austria for lectures in Vienna.

(iii) AEBko demokratak

US Democrat recommends more courage to Social Democrats

State bankrupt impossible

The millionaire and the Wall Street critical movement of the "99 percent": Sounds like a strange alliance.

Mosler himself sees his monetary theory as non-partisan, as he said in a conversation with the KURIER on Tuesday: "In 2010, I suggested a suspension of income tax to help the economy." It was the only law that passed the Congress under Obama nonpartisan have. He belongs to no party, sees himself as "progressives".

(iv) Mosler eta politikariak. Estatua eta dirua

What makes Mosler's theory so attractive to politicians? MMT turns the usual view on the head. That you have to take money before you can spend it may therefore apply to individuals or companies. But for a state that controls its own currency, that way of thinking makes no sense.

Because, according to the MMT advocates, the state creates the money itself - directly or via central bank. Thus, an independent state could never go bankrupt, because if necessary it pays the debts, in which he "prints money" (for which today only a computer reservation is necessary).

(v) Aurrezkiak

Save, for what?

MMT was boosted by the fact that central banks with "unconventional" monetary policy have been doing just that since the crisis: (indirectly) financing states. For Mosler the normal way. In his opinion, taxes and government bonds are only needed to steer the economy and the money supply.

About the interest does not work. The European Central Bank (ECB) has not reached its inflation target for eight years, despite negative interest rates. "Not even with an Italian as president. What does Draghi say? We need more time. "Japan has been claiming that for thirty years.

Mosler would keep the ECB interest rates permanently at zero. The objection, the Austrians would not be happy as a savers' people, he replies: "You are already angry, right?"

He would give no incentives to save, because "that brings nothing to the economy". If the state pension is high enough, savings are not necessary.

(vi) AEBko ezkerra

USA: The left oldie wants to know it again

Austria's surplus fits

For the first time in decades, Austria has achieved a budget surplus, says Mosler fittingly: because euro members do not control the creation of money themselves (the ECB does that), they would have to balance it reasonably. Therefore, the EU deficit rules are necessary.

But that is not the case at ECB level. That could spend each state a few hundred euros per inhabitant. With these billions1, a state could repay debts or improve the infrastructure as it chose.

And in general, Mosler would prefer to locate EU institutions where unemployment is highest: "What did the ECB tower cost, well over a billion euros? Why is he in Frankfurt and not in Athens? "

(vii) Salbatu mundua

Simply save the world

Critics, interestingly including left-wing economists such as Paul Krugman and Larry Summers, have a hard time with MMT. The former German economy Peter Bofinger can generally gain something from the idea, but limits: "The dose makes the poison."

And Belgian ECB economist Peter Praet faced massive social media condemnation - calling MMT a "dangerous proposition".

In fact, there is great skepticism: those who expand the money supply, according to traditional teachings rising prices. Would we be on the way to hyperinflation with MMT as in Venezuela? 

Unrestrained increase of the money supply can cause inflation, admits Mosler. That is very, very rarely the case. In Venezuela, corruption plays a far greater role.

And anyway, "If investing in a 'Green Deal' will help stop climate change, let's say that in the end we have saved the world, but it has given us five or seven percent inflation. That was a mistake?