Warren Mosler

Modern Monetary Theory - MMT



I am most indebted to Rajendra Rasu who had the vision and desire to compile this comprehensive presentation. His motivation is entirely altruistic- he is a true servant of humanity who wishes only to promote universal wellbeing.

It is Rajendra's sincere belief that his vision can be realized through a universal understanding of what I've presented over the last 30 years, recently popularized as 'Modern Monetary Theory' the recognition of which opens the door to public policy options previously not considered viable. This vision of a high quality standard of living includes universal full employment, healthcare, education, a constructive private sector, and all in the context of social equity.

After countless long hours of development, Raj's The Collected Works of Warren Mosler is now a reality. Rajendra, I salute you!

Warren Mosler

Selected Posts

Mosler:  It's true for fixed fx (fx = Exchange) regimes that don't care about real terms of trade or the real standard of living.

Comment: Why do people (many economists included) assume that imports are a cost, rather than a benefit?

Mosler:  They confuse monetary cost with real cost? And think the Federal deficit is a bad thing per se?

Mosler:  The real wealth = domestic output plus imports minus exports. Not valuation vs some other currency that might be appreciating vs yours.

Comment: It is but shows no theory is a universal panacea for all nations. US resource rich & could probably get away without exporting or importing. NZ needs to export surplus to be able to import things of modern economy can't produce itself. NZ's problem is local food sold at export prices.

Mosler:  Just saying optimizing real wealth is about sustaining full employment and optimizing real terms of trade.

Posts in chronological order

Comment: Right, even FICA tax cuts will eventually enrich the .1% as the money works its way thru from consumers to savers. Which is why.

Mosler:  Don't forget to look first to what it does for real consumption and distribution of real consumption ;)

Comment: The economy is not a closed loop. Global capitalism has lifted millions of people from poverty around the world, and continues to do so by creating jobs in manufacturing. Profits from re-exporting these products funds new jobs.

Mosler:  Jobs are the real costs. Its real consumption of real output that ultimately define poverty and the standard of living.

Comment: Systematic transfer of our nation’s prosperity to the 1%. Same for the UK @UKLabour needs to do economics.

Mosler:  As far as standard of living goes, it's about the distribution of real consumption, and I have yet to see any discussion in that regard.

Comment: The ultra-rich have rigged our economy & rigged our tax rules. We need structural change. That’s why I’m proposing something brand-new: An annual wealth tax on the tippy-top 0.1%. We’d get $3 trillion in new revenue to invest in rebuilding the middle-class. Let’s make it happen.

Mosler:  It doesn't reduce aggregate demand so it doesn't add any fiscal space... :(

Mosler:  So it doesn't at all address the real issue- excess consumption by 'the rich' (or anyone else), and, in fact is a useful distraction for 'the rich' that works to delay resolution of this real issue. :(

Mosler:  We can gain $trillions per year of fiscal space by eliminating most of the parasitic financial sector by deleting the supportive institutional structure that created it. Not mention how Medicare for all likewise cuts $1 trillion in real costs.

All Posts...

More works of Mosler



Warren B Mosler

“One of the brightest minds in finance.” CNBC (6/11/10)


Rajendra Rasu

“... finding answer to the economic problems"


MMT India


Your message has been sent. Thank you!