L. Randall Wray

Join Dr. L. Randall Wray, a leading economist and advocate for Modern Monetary Theory, as he unravels the intriguing history of money. Wray challenges traditional ideas about debt, arguing it's more about tracking obligations than a burden. He discusses the evolution from barter systems to tally sticks and the rise of central banking. With insights into how currency and debt dynamics shape modern economies, he paints a picture of money as a fluid, evolving construct rather than a fixed entity.

Grumbine: Can we have too much money? Wray: Yes, we surely can. Usually, our problem is that there's too much bank money, and the usual consequence is a financial crisis. Obviously, Steve and his guest are talking about the nation, not their own wallets. In this episode, he welcomes L. Randall Wray to Macro N Cheese for the eighth time to talk about Randy’s new book, "Making Money Work for Us: How MMT Can Save America," which will be released in America in November. Our listeners know they can count on Randy to explain MMT principles clearly without drowning us in a sea of wonkiness, but, also, without oversimplifying the subject. Consider the above exchange... and then this: Wray: Money cannot cause inflation. I can state that unequivocally. MMT understands that those two statements are not contradictory. Randy talks about the banks financing too much speculative activity that goes bad, usually resulting in a financial crisis. Extensive government spending – when it’s targeted, as in a job guarantee – does not cause a crisis, does not cause inflation. He contrasts this to the wrong kind of government spending, and describes how it is inflationary (cough, UBI). Steve and Randy go through the other questions that MMT is uniquely able to answer in a way that isn’t disconnected from our real-world observations. What is money and how is it created? What does it mean when you say “taxes drive money”? They discuss deficits and debt – and why it is that the few times the US repaid part of the national debt, it led to a depression, except under Bill Clinton, when it led to the great financial crisis. You’ll want to listen to this episode just for the discussion of the Fed and the banks. The CEO’s should all be locked up. L. Randall Wray is a Professor of Economics at Bard College and Senior Scholar at the Levy Economics Institute. www.levyinstitute.org

Randall Wray, a Professor of Economics at Bard College and a key figure in the Modern Monetary Theory (MMT) movement, faces criticism over his historical analysis. The discussion delves into the misconceptions around government debt and economic growth, exploring how size and intervention impact performance. Wray's interpretations are contrasted with real historical examples, like colonial currency dynamics and Yap Island's unique stone money, which is depicted as a social construct beyond mere currency.