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Modern Monetary Theory

MMT to Washington: There Is No Long-term Deficit Problem!

Warren Mosler | Posted 05.11.2013 | Business
Warren Mosler

What do the president, the party leaders, all members of Congress, all the headline economists (both hawks and doves), the entire Federal Open Market Committee, and just about everyone else apart from Modern Monetary Theory (MMT) proponents agree on?

The Trillion Dollar Coin vs. Limits to Growth

Mike Sandler | Posted 04.07.2013 | Business
Mike Sandler

Is the trillion dollar coin sustainable? If it helps inspire ideas to solve the planet's economic and ecological problems, it sure can be.

The Trillion-dollar Coin's Week of Fame

Mike Sandler | Posted 03.20.2013 | Business
Mike Sandler

As the Vatican learned with Galileo, the truth has a way of resurfacing. Be on the lookout for debt-free, interest-free money, coming soon to a country-needlessly-plunged-into-recession-by-austerity near you.

Platinum Coin Idea Is Rejected by White House

Warren Mosler | Posted 03.16.2013 | Business
Warren Mosler

This is far more problematic than markets realize. The president had a choice. The debt ceiling thing expresses 'the will of Congress' where Congres...

Beyond Debt Ceiling, Trillion Dollar Coin Offers New Economic Paradigm

Mike Sandler | Posted 01.10.2013 | Business
Mike Sandler

The coin presents a rare opportunity to have a public discussion about the nature of money, something very few people understand. If advocates play their cards (and coins) right, it could even result in the creation of a new and more sustainable monetary system.

The MMT Grand Bargain: Raise Social Security Benefits and Suspend FICA

Warren Mosler | Posted 02.10.2013 | Politics
Warren Mosler

Every serious economic forecaster cuts his GDP and employment estimate with tax hikes and spending cuts.

It's Not the Deficit, Stupid!

Warren Mosler | Posted 01.16.2013 | Business
Warren Mosler

They thought all kinds of bad things about the deficit. And then, after the 2011 debt ceiling debacle and the formal downgrading of the credit rating of the United States, they were all proven utterly wrong.

Monetary Reform Could Expand the 'Fiscal Cliff' Debate

Mike Sandler | Posted 01.09.2013 | Business
Mike Sandler

Two aspects of the current system of money creation cause unnecessary difficulties for the federal government's budget.

An Inflation Inflection and the Best Trillion We Shouldn't Spend

Robin Koerner | Posted 10.12.2012 | Politics
Robin Koerner

Since the government is only taking in about 57 cents in tax revenue for every dollar it spends (as it is currently doing while running its huge public deficit), why aren't we seeing all that massive inflation as this new government-spending-created money sloshes around the private sector?

The Economics of Eurozone Trade Differentials and Fiscal Transfers

Warren Mosler | Posted 09.15.2012 | World
Warren Mosler

The trade differentials in the eurozone are not in the least an insurmountable problem, at least not in theory.

The Certainty of Debt and Taxes - The Fiscal Cliff Burden of Proof

Warren Mosler | Posted 09.08.2012 | Business
Warren Mosler

Federal deficit reduction should be off the table, and the burden of proof of a sufficiently high long term inflation risk be on those who want to put the deficit back on the table.

Demand Leakages: The 800lb Economist in the Room

Warren Mosler | Posted 09.04.2012 | Business
Warren Mosler

Demand leakages are unspent income. This translates into what's commonly called the 'output gap,' which is largely a sanitized way of saying unemployment.

Why the EU Won't Fix Anything This Weekend

Warren Mosler | Posted 02.08.2012 | Business
Warren Mosler

While the Germans aren't entirely wrong in their belief that lower deficits would restore funding capacity, I don't think they recognize that as currency users debt to GDP ratios may need to be under 30 percent to get to that point.

It must be impossible for the Fed to create inflation

Warren Mosler | Posted 01.15.2012 | Business
Warren Mosler

Hardly an hour goes by without some pundit pushing the possibility of some kind of run away inflation, with Zimbabwe and Weimar rolling off the tongue...

Deficit Reduction Super Committee Fighting the Battle of New Orleans

Warren Mosler | Posted 12.04.2011 | Politics
Warren Mosler

I realize it's not a perfect analogy, but due to poor communications, the battle of New Orleans was fought well after the War of 1812 had ended. Like...

The UMKC Buckaroo: A Currency Model for World Prosperity

Warren Mosler | Posted 11.20.2011 | College
Warren Mosler

It's been more than 10 years since the economics department at UMKC introduced its own currency. It's called the buckaroo, named in sync with the school mascot, the kangaroo.

The Speech That President Obama Should Make

Warren Mosler | Posted 11.06.2011 | Politics
Warren Mosler

This is the speech I would make if I were President Obama.

Congressman Ryan: Apologize Now About the US Being the Next Greece

Warren Mosler | Posted 10.17.2011 | Politics
Warren Mosler

Congressman Ryan's response to President Obama's State of the Union address included something we've all heard a lot of ever since. He warned along t...

Connecting the Dots -- Deficit Reduction Is Now Only About Inflation, Not Insolvency

Warren Mosler | Posted 10.11.2011 | Business
Warren Mosler

There is no such thing as the US becoming the next Greece. There is no such thing as the US getting cut off from spending by the financial markets and forced to go begging to the IMF to get US dollars to spend.

Austrian Medicine for the MMT Patient

Robin Koerner | Posted 10.11.2011 | Business
Robin Koerner

Austrians prefer limited government -- limited to enforcing contracts made voluntarily between free individuals. They don't want government to print and inflate money as that allows them covertly to reduce private wealth, transferring it to themselves.

Congress: You Are the Scorekeepers for the U.S. Dollar, Not a Player!

Warren Mosler | Posted 10.01.2011 | Politics
Warren Mosler

There is no looming financial crisis for the U.S. Government, the scorekeeper for the U.S. dollar. The U.S. Government can't run out of dollars, and it is not dependent on taxing or borrowing to be able to spend.

Mercy! Can't They Get Anything Right?

Warren Mosler | Posted 09.18.2011 | Business
Warren Mosler

Even with sky-high unemployment, we can easily afford to both suspend FICA and truly strengthen Social Security and Medicare by increasing the minimum benefits and closing the donut holes.

A Balanced Budget Amendment Would Change Everything

Robin Koerner | Posted 08.26.2011 | Politics
Robin Koerner

The USA has infinitely more economic flexibility under our current system than it would after a budget-balancing amendment, and the economic arguments against it are compelling. So what is there to discuss?

Austrian Economics and Modern Monetary Theory

Robin Koerner | Posted 08.20.2011 | Business
Robin Koerner

As the disastrous consequences of loose money, central banking and a fractional reserve system have become obvious, many citizens have discovered some...

Modern Monetary Theory: The Last Progressive Left Standing

Warren Mosler | Posted 08.13.2011 | Business
Warren Mosler

The headline progressives are in full retreat. They have found out the hard way that their bleeding heart pleadings -- 'yes, the financial markets might destroy us, but how can we cut this or that worthy cause' -- don't cut it.