Tag Archives: Modern Monetary Theory

By L. Randall Wray

Today George Lakoff had a new piece on Michigan’s “right to work” law. I won’t go into that issue, but obviously the framing involved in the naming of a law that is diametrically opposed to “right to work” is worth examining. Instead I just want to quote a couple of particularly insightful (incite-ful?) paragraphs. Continue reading →

By L. Randall Wray

The monetary system is a wonderful creation. It allows for individual choice while giving government access to resources needed to allow it work for us to achieve a just society.

The monetary system spurs entrepreneurial initiative. It finances, organizes, and distributes much of the nation’s output. It is one of the primary mechanisms used by government to accomplish the public purpose. Continue reading →

By L. Randall Wray

Deficits and Debt are probably the most terrifying topic that MMT addresses. We need to be careful. We are treading on moral (or religious) grounds. We know that one should not be a debtor (or, a creditor)—most religions tell us so. One who proclaims that deficits and debts are OK is automatically engaged in blasphemy of various sorts, not least of which is a crime against morality. Let’s try to frame the discussion. Continue reading →

By L. Randall Wray

As we have discussed, sovereign government cannot run out of the keystrokes it uses to mark-up balance sheets as it spends. Does our argument rely on modern technology, that sends electrons or photons (I’m not sure which) pulsing through copper or fiber-optic lines? No, of course not.

Government always spent by notching hazelwood, imprinting clay, stamping coins, chalk on slate, or “running the printing press”. There has never been another alternative. These marks or electronic entries represent government IOUs. Continue reading →

By L. Randall Wray

We take care of our own
We take care of our own
Wherever this flag’s flown
We take care of our own

Let me repeat and clarify my purpose in this series. I am attempting to initiate a discussion among progressives on how to frame discussions about money and related issues. My perspective is MMT. To be sure, on one level MMT is a description. It provides a correct description of the operation of a sovereign currency system. Some commentators have objected to my progressive framing; they assert that one can accept MMT without the progressive bias. Sure they can. One can understand how money “works” but prefer NOT to use money in the public interest. Continue reading →