Warren Mosler, a renowned economist and pioneer of modern monetary theory, tackles the complexities of monetary policy and its real-world effects. He discusses how interest rates influence economic health and the misconceptions surrounding trade deficits. The conversation highlights the intricate connection between government spending and inflation, emphasizing the need for a shift in fiscal strategies. Mosler critiques outdated economic models and argues that budget deficits shouldn't be feared in a fiat currency system, offering fresh perspectives on today’s economic challenges.

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.

Warren Mosler, president of Valance Company and the economist considered the father of Modern Monetary Theory (MMT), joins Maggie Lake to discuss what MMT is, how it relates to inflation and the ramifications of current Fed policy. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Warren Mosler, founder of Valance Co., Inc. and author of “The 7 Deadly Innocent Frauds of Economic Policy,” is widely viewed as the intellectual godfather of Modern Monetary Theory (MMT), a framework for understanding money and debt which underscores a government’s ability to print money to pay for goods and services without relying necessarily on borrowing or taxation. Mosler joins Forward Guidance to apply these ideas to today’s financial issues. He argues why a failure to raise the U.S. debt ceiling would be truly catastrophic, and he makes the case that the Fed’s rate hikes are actually contributing to inflation, rather than fighting it, because the government is printing more money in order to pay its debt. Filmed on May 30, 2023.____Follow Warren Mosler on Twitter https://twitter.com/wbmoslerFollow Jack Farley on Twitter https://twitter.com/JackFarley96Follow Forward Guidance on Twitter https://twitter.com/ForwardGuidanceFollow Blockworks on Twitter https://twitter.com/Blockworks_Warren’s website: https://moslereconomics.com/Warren’s book and other writings: https://moslereconomics.com/mandatory-readings/____Use code GUIDANCE20 to get 20% off Permissionless 2023 in Austin:https://blockworks.co/event/permissionless-2023Research, news, data, governance and models – now, all in one place. As a listener of Forward Guidance, you can use code GUIDANCE10 for a 10% discount when signing up to Blockworks Research https://www.blockworksresearch.com/____Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter:https://rb.gy/5weeywMarket commentary, charts, degen trade ideas, governance updates, token performance, can’t-miss-tweets and more. Subscribe to the Blockworks Research “Daily Debrief” Newsletter: https://rb.gy/feusos____Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.____(00:00) Risk Of Government Unwind Would Be Catastrophic(07:24) "Money Is Just A Series Of Dots Going On And Off In People's Bank Accounts"(14:52) The Federal Reserve Prints Money(19:07) The Government Spends First, Taxes and Borrows Second(31:23) Permissionless(32:01) Quantitative Easing Does Not Have An Actual Effect On The Economy(33:17) High Interest Rates Mean More Deficit Spending(48:29) Challenging The Narrative of Volcker As The Slayer Of Inflation Dragon(54:00) Challenging The Wage Price Spiral(01:01:13) Currency Itself Is A "Public Monopoly"(01:04:04) We Are NOT In A Recession, Says Mosler(01:11:21) Is The Solution To Inflation To Cut Government Spending?(01:16:30) Blockworks Research(01:17:28) The Debt Ceiling(01:24:08) The Dollar

Warren Mosler, an expert in Modern Monetary Theory (MMT), discusses key principles of MMT including government spending preceding taxation. The conversation also touches on rising fuel prices, the role of Saudi Arabia in setting oil prices, and the consequences of increasing interest rates on asset inflation and the housing market.