David Bezic & Warren Mosler on MMT and misconceptions

Posted on August 29, 2021 by Florian Buschek

This is a fantastic conversation between David Bezic & Warren Mosler on the Market Huddle

While a lot from the MMT crowd is extrapolated to extremes and thus nonsensical, those two guys are well worth listening to. Mosler has been a highly successful hedge fund manager, serial entrepreneur and trader, a very smart and reasonable guy. They talk about things like the role of reserves, loans create deposits, debt, accounting for monetary transactions, currency issuers versus users, fixed and floating exchange rates, etc etc

One example that stood out to me was Mosler’s suggestion that central banks should sell sovereign credit default swaps, because a government never needs to default on bonds in its own currency and the central bank can always create that currency at will. It is such a simple yet brilliant idea.

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