Social Science / Economics /MMT

Modern Monetary Theory (MMT)

"The process by which money is created is so simple that the mind is repelled. (..) The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it. -- John Kenneth Galbraith
Pierre Bourdieu had the most acute critical analysis of neoliberalism, even to the point that he sensed that neoliberalism's greatest trick is to make the nation state and the politicians seem powerless with regard to controlling and spending a nation's finances. But he did not have the intellectual grip on the monetary system allowing him to destroy neoliberalism completely. Warren Mosler & MMT do. Moreover, as Randall Wray exlains in his lecture on the intellectual roots of MMT, Warren Mosler uncovered the truth about money that the economic profession had buried for fifty years and continue to suppress. 
“Once a nation parts with the control of its currency and credit, it matters not who makes that nation's laws. Usury, once in control, will wreck any nation. Until the control of the issue of currency and credit is restored to government and recognized as its most conspicuous and sacred responsibility, all talk of the sovereignty of Parliament and of democracy is idle and futile. (..) So why let a whole nation fall into a depression, because of a vitiated control of these figures?" Mackenzie King, leader of Canadian Liberal Party, 1935. Related Book In This Age of Plenty: A Vision of the Economic Order in Canada Along Social Credit Lines, 2012, by Louis Even 
"The state nobility, which preaches the withering away of the state and the undivided reign of the market and the consumer, the commercial substitute for the citizen, has kidnapped the state: it has made the public good a private good, has made the 'public thing', res publica, the Republic, its own thing. (..) The national states are undermined from outside by these financial forces, and they are undermined from inside by those who act as the accomplices of these financial forces, in other words, the financiers, bankers and finance ministry officials. I think that the dominated groups in society have an interest in defending the state, particularly in its social aspect." [talk] 'Against the Destruction of a Civilization'. Pierre BourdieuActs of Resistance, 1998: 25 
"The Nobel Factor (Princeton UP, 2016) tells how the prize, created by the Swedish central bank, emerged from a conflict between central bank orthodoxy and social democracy. The aim was to use the halo of the Nobel brand to enhance central bank authority and the prestige of market-friendly economics, in order to influence the future of Sweden and the rest of the developed world. And this strategy has worked, with sometimes disastrous results for societies striving to cope with the requirements of economic theory and deregulated markets." HS Neoliberal Plan Destroy Civilization
"It would be a shocking scandal if it came to light that the professions of medical science had, for decades, known about an easy to treat, underlying cause of cancer—but conspired to obfuscate and suppress the information to protect their participation in a medical industry raking in hundreds of billions a year to treat the disease. Professional standings, tenures, licenses would be in tatters. Lawsuits would abound. Outrage would march on every city hospital and medical college in the nation—would it not? - Such a betrayal, of course, is not humanly possible. Right? Yet is it not the case that the professions of economics, journalism and politics are guilty of something very like this kind of betrayal? Doesn’t it strike you as odd that, for more than five decades now, the U.S. government has been issuing and spending trillions of dollars of U.S. FIAT currency, and not once has a mainstream economist, journalist, or political leader found it worthy of consideration to even try to explain—from the perspective of what economic policy is all about—what a sovereign fiat currency actually is, and how it functions?  (..) - while all this great struggle debilitates the American prospect like a cancer, the professions of economics, journalism, and politics obfuscate and suppress the underlying possibility of an actual cure: The understanding of what sovereign fiat-currency is and how we can use it." Money: The High Cost of Betrayal, March 1, 2018 by J. D. Alt, Naked Capitalism  
"Ask any congressman (as I have many times) or private citizen how it all works, and he or she will tell you emphatically that: “…the government has to either tax or borrow to get the funds to spend, just like any household has to somehow get the money it needs to spend.” And from this comes the inevitable question about healthcare, defense, social security, and any and all government spending: How are you going to pay for it???!!! - So, how am I uniquely qualifed to be promoting these [tax cuts, welfare and job] proposals? My confidence comes from 40 years’ experience in the fnancial and economic realm. I would venture that I’m perhaps the only person who can answer the question: “How are you going to pay for it?” My book takes on this issue  and encourages the return of economics study to the operational realities of our monetary system." -- Warren Mosler, The 7 Deadly Innocent Frauds of Economic Policy, 2010 
"In response to these challenging times, economist William Mitchell and political theorist Thomas Fazi reconceptualise the nation state as a vehicle for progressive change. They show how despite the ravages of neoliberalism, the state still contains resources for democratic control of a nation’s economy and finances." Reclaiming the State. A Progressive Vision of Sovereignty for a Post-Neoliberal World, 2017, Mitchell, Fazi 

MMT Insights in National Banks' Accounts Money Creation

"So ask yourself this question: If the Federal Reserve can create trillions of dollars with a single keystroke, and the Fed is the government’s bank, then why does President Obama claim we’ve “run out” of money?"  Where Did the Federal Reserve Get All that Money?, 2012, Stephanie Kelton
Given the fact that all the Western professors in economics and the national banks first began to understand money creation (again) after Warren Mosler began his lectures and writing on the subject, it seems only fair that he should be included here, in an interesting blog post: Mosler on “Where Does Money Come From?”, by Alexander Douglas
NEW from MMT International Conference in Kansas, September 2017: 
James K Galbraith Reviews MMT 


NEW BOOK Bill Mitchell & Thomas Fazi: Reclaiming the State. A Progressive Vision of Sovereignty for a Post-Neoliberal World. Pluto Press, September, 2017
'If you had combined the economics study with studies in psychology and sociology, you would have soon realised that what was being taught in your economics course was total nonsense.' Bill Mitchell: 'Falling enrolments mainstream econ. programs is desirable outcome, 2017  
In some ways all MMT is doing is describing the real world. Neo-classical theory is telling you about a fantasy planet.
Steve Keen, 2017
What is neoliberalism?
A progr. for destroying collective structures which may impede the pure market logic.
Pierre Bourdieu, 1998
What is MMT? - A programme for rebuilding collective structures.
Homo Sociologicus, 2017
One cannot win the Nobel Prize in Economics, if one understands the Economy.
Michael Hudson, 2016
95% of all declared 'progressives' are effectively operating in a neoliberal space.
Bill Mitchell, 2017
We are destroying our civilization because of a wrong economic thinking
Warren Mosler, 2013

Economists & Blogs


Research & Institutions 

Hans Werner Sinn
Robert Skidelsky