Warren Mosler Interviewed about Modern Monetary Theory (MMT)

I listened to an interview of Warren Mosler by Bob Murphy, for episode 18 of The Bob Murphy Show podcast.

A link to the full interview is at the bottom of the post.

The interview is easily divided into three sections, which can be listened to independently if desired, so I broke the interview audio file into three sections which are below.

No part of the original episode is missing. I merely made it convenient to skip bits you might want to skip.

Introduction: Bob Murphy talks about his show and his upcoming guest

This is the intro from the full episode

Part 1: Warren Mosler talks about his career and how he saw what others missed

What surprised me the most about this segment is just how much of a non economist Mosler was at the time.

I knew he had a BA in economics.

I learned that he studied engineering for two years, then switched his major to economics. So he had at most two years of exposure to economics academia.

He then went to work as a bond trader.

At the time he figured out MMT he had not read any of Keynes . He was looking for ways to figure out better trades, and while doing so he figured out how modern economies work.

A modern economy being one where the dominate characteristics are a fiat currency with floating exchange rates seeding a fractional reserve banking system.

In the spirit of full disclosure, Mosler has done more than “merely” define how modern economies work. In this intro he also discusses the design of a racing car , and the design of a very stable ferry that runs between St. Croix (where he lives) and St. Thomas.

These parts aren’t strictly how he came to see MMT, so if you’re interest is strictly on MMT, when he starts talking about them, you can stop listening.

Without further ado, part 1 is below.

How Mosler’s work as a bond trader led him to MMT

Part 2: The fundamental aspects of MMT

As Bob said in his intro, he was not debating Warren Mosler on the viability of MMT. He was interviewing Mosler about the fundamental principals of MMT.

This is the meat of things for those interested in what MMT is, rather than how he figured it out.

I hope you find it as useful as I did.

The fundamental concepts of MMT

Full Episode

As mentioned above, below is a link to the full episode.