Ep. 280 The Theory and History Needed to Refute Keynesianism and MMT
Bob Murphy Show
00:00
The MMT's Perspective on the Fed's Position
The Fed is allowed just to change numbers and a spreadsheet. The Treasury could instruct the Fed to go ahead and credit JP Morgan's account by a billion, like we said. But in order for the Fed to do that, they're going to deduct a billion dollars from the Treasury's account with the Fed. So if I only have $80 in my checking account and I go to pay 100 at the grocery store, it well, they actually probably don't honor that one. Right? And so Mosler saying by the same token, when the Fed goes ahead and credits JP Morgan’s account for this transaction, that billion dollars didn't come from somewhere. MMT people would lead
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