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The DemystifySci Podcast

How Much Money Can We Print? - Warren Mosler, Modern Monetary Theory - DSPod #251

May 27, 2024
Economist Warren Mosler talks about Modern Monetary Theory, debunking myths about deficit spending, inflation, and government finances. The podcast delves into the purpose of taxes, the Federal Reserve's role, and the concept of informed democracy. It challenges traditional economic beliefs, discussing economic forecasting, public debt, and deficit impacts. Mosler also explores the nuances of inflation fears, government interventions in banking, and global trade dynamics.
02:41:36

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Fiscal crises stem from governments not spending enough money, requiring comfortable deficit spending to reverse recessions.
  • Interest rates impact deficit spending, leading to higher deficits that boost the economy despite traditional inflation concerns.

Deep dives

Exploring Modern Monetary Theory with Warren Mosler

Modern monetary theory delves into the origins of money and government spending, challenging traditional economic narratives. At the core lies the creation of money by the government to fund its operations and drive the economy. The theory argues that taxes do not fund government spending but rather play a role in regulating the value of money by creating demand for it. Mosler emphasizes that a lack of understanding of these principles by policymakers leads to misconceptions about money creation and distribution in the economy.

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