Talk with Warren Mosler - II

Besides chatting about physics, the other reason Warren called me was to help me reply to @paddymccoll on twitter who asked me about constraints on banks during the Bretton-Woods era.

Now, I am no expert on Bretton-Woods, but had talked with Steven Grumbine on the podcast Macro’n’Cheese about foreign exchange constraints and things like BRICS currency, and all that. That was only because Steve could not get Bill Mitchell or another actual expert on the phone that week.

Call me the MMT’er of last resort.

But I must have faked sounding authoritative enough to know what I was talking about. However, I am not going to answer a sincere question like paddy’s without some expert advice and research.

Research

The problem with research is that mainstream economics, hence most of the books and journals, do not understand state currency and central bank operations. So I wasn’t going to waste a lot of time doing a literature review. Just the basics. Then I was going to turn to Warren Mosler for MMT informed insights.Turns out this pays dividends.

What Was the Question?