Warren Mosler: Profiled People in Economics and Banking
Executive Summary
- Warren Mosler is one of the most important thinkers in the area of banking.
- Mosler’s insights come from hands-on experience in banking and a natural ability to question dogma.
Introduction
Mosler is one of the originators of modern monetary theory. Mosler explains in very clear terms how banking is misunderstood and misexplained to the public. This demonstrates that many people who discuss banking accept its inaccurate assumptions — that they were taught by courses or writings that are promulgated by private banking interests.
Why Mainstream Economists and Private Banking Interests Hate Warren Mosler
Mosler’s deep knowledge of banking makes it more difficult for mainstream economists to contradict his insights without resorting to calling MMT “unrealistic.” This is a quote describing Mosler’s approach.
“The common thread tying these themes together is simplicity itself. It’s that modern money is a spreadsheet! It works by computer! When government spends or lends, it does so by adding numbers to private bank accounts. When it taxes, it marks those same accounts down. When it borrows, it shifts funds from a demand deposit (called a reserve account) to savings (called a securities account). And that for practical purposes is all there is. The money government spends doesn’t come from anywhere, and it doesn’t cost anything to produce. The government, therefore, cannot run out.”
Source: Mosler Economics