
Unpacking Modern Monetary Theory w/ Warren Mosler
Real Vision: Finance & Investing
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The Source of the Price Level
The Fed is a monopoly supplier of bank reserves, and if they supply any extra, the rate will go to zero. The mainstream models do not have a source of the price level. They don't even have money in their models. And so it's never dawned on them that that's the case. But that's a very important contribution from modern monetary theory.
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