Bold Politics with Zack Polanski Are We Looking At The Economy All Wrong? | Richard Murphy | Zack Polanski
Oct 21, 2025
Richard Murphy, an economist and chartered accountant known for his insights on modern monetary theory, dives into provocative economic discussions. He challenges the notion that national economies should balance like household budgets and deconstructs how inflation can sometimes aid in wealth redistribution. Murphy advocates for fiscal reforms targeting capital gains and suggests prioritizing universal basic services over UBI. He elaborates on the impacts of the Bank of England's policies and envisions a new economic paradigm focused on social safety nets and full employment.
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Nation Vs Household: Money Is Different
- A national economy is the opposite of a household budget because the state creates money rather than merely managing a fixed pot.
- Governments face real-resource constraints, not the same cash limits households do.
Inflation Can Be Useful If Managed
- Modest inflation can be beneficial because it prevents deflation and eases debt burdens over time.
- Persistent spikes in essentials like food, energy and rent harm low-income people disproportionately.
MMT: Money Is Promises, Not Gold
- Modern Monetary Theory describes how banks and governments create money through promises, not by lending depositor cash.
- The real constraint is full employment and physical resources, not a lack of government money.
