Warren Mosler-en Price of everyting
(https://twitter.com/wbmosler/status/1501991609055039488)
Warren B. Mosler #MMT@wbmosler
How MMT Explains the Price of Everything | Real Vision
Warren Mosler is a former hedge fund manager turned academic economist who’s known as the father of Modern Monetary Theory. He’d like to remind us that “MMT is descriptive, not prescriptive.” As he…the economy needs the state’s currency, state spending determines terms of exchange. The bottom line is prices are a function of prices paid by the state when it spends. Mosler illustrates this general framework with reference to brief histories of fixed and floating exchange rate regimes. Of note, when it comes to labor, a “job guarantee” is a realistic policy choice in a state that uses a floating exchange rate. Mosler and Green also touch on
How MMT Explains the Price of Everything
Mike Green in Conversation · Featuring Warren Mosler and Michael Green
Published on: March 10th, 2022 • Duration: 78 minutes
Warren Mosler is a former hedge fund manager turned academic economist who’s known as the father of Modern Monetary Theory. He’d like to remind us that “MMT is descriptive, not prescriptive.” As he explains to Mike Green of Simplify Asset Management in part one of a two-part conversation, the key to understanding MMT is the sequence of state imposition of a coercive tax rate, state spending, and the payment of taxes and purchase of state securities. The basic effect is the state currency becomes a public monopoly. Because the economy needs the state’s currency, state spending determines terms of exchange. The bottom line is prices are a function of prices paid by the state when it spends. Mosler illustrates this general framework with reference to brief histories of fixed and floating exchange rate regimes. Of note, when it comes to labor, a “job guarantee” is a realistic policy choice in a state that uses a floating exchange rate. Mosler and Green also touch on
policy choices that benefit exporters as well as mechanisms of real wealth creation. Read Mosler’s “Framework for the Analysis of the Price Level and Inflation” here: https://rvtv.io/363Qjwm. To explore more of his work visit http://www.moslereconomics.com. And be sure to tune in for part two of the interview tomorrow.
Recorded on March 7, 2022.
CHAPTERS
- 00:01:49
How the Father of MMT Formed his Framework
- 00:03:50
How MMT Is Different From Traditional Economic Theory
- 00:06:44
The Creation of Money & The Gold Standard in the Economic System
- 00:11:27
Ramifications of Fixed & Floating Rate Regimes
- 00:21:40
Policy Goals In Light of Exchange Rate Regimes
- 00:26:01
Setting Prices Based on Human Capital
- 00:33:58
Competing For Jobs is A Policy Choice
- 00:37:08
Inflation Does Not Affect the Real Wealth of The Country
- 00:38:08
What Happens If The Price of Labor is Too High?
- 00:43:36
The Inflation Story of the ’70s
- 00:46:22
Government Control of Capital Allocation
- 00:54:31
Inflationary Pressures and Labor Force Capacity
- 01:01:34
Is MMT To Blame For Increasing Price Levels?
