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Quote by William F. Mitchell

“While export spending boosts national income, we consider exports to be a cost in the sense that they deprive the domestic population of the use of the real resources that are used up in the production of the goods and services sold abroad.”

Quote by William F. Mitchell

Book:Modern Monetary Theory: Key Insights, Leading Thinkers

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Modern Monetary Theory: Key Insights, Leading Thinkers

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William F. Mitchell

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“The multilateral institutions that were introduced in the Post World War II period to coordinate international aid – the IMF and the World Bank – have failed in their respective missions. They became agents for the ‘free market’ ideology and through their structural adjustment packages and related policies have made it harder for a nation to develop.”

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Book:Modern Monetary Theory: Key Insights, Leading Thinkers

Source: Modern Monetary Theory: Key Insights, Leading Thinkers

“The state sets the terms of exchange for its currency with the prices it pays when it spends, and not per se by the quantity of currency that it spends.”

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Book:Modern Monetary Theory: Key Insights, Leading Thinkers

Source: Modern Monetary Theory: Key Insights, Leading Thinkers

“Demand originates with the state. Without state spending, the value of the currency is unspecified and there is no aggregate demand. Only subsequent to state spending can the currency obtain absolute value and non-government spending take place.”

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Book:Modern Monetary Theory: Key Insights, Leading Thinkers

Source: Modern Monetary Theory: Key Insights, Leading Thinkers

“when there is a line outside the Job Guarantee Office, you know you need to spend more; when there is not, you do not. And once in place as a programme, there is no need for new legislation in the face of every downturn.”

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Book:Modern Monetary Theory: Key Insights, Leading Thinkers

Source: Modern Monetary Theory: Key Insights, Leading Thinkers

“A once-and-for-all increase in prices due to low-end workers finally seeing their wages catch up to historical productivity increases is a desired policy outcome, not something to be avoided. Thereafter, the goal would be for wages to stay roughly par with productivity, thereby creating price stability.”

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Book:Modern Monetary Theory: Key Insights, Leading Thinkers

Source: Modern Monetary Theory: Key Insights, Leading Thinkers

“inflation is a zero-sum game: there are always winners and losers, not just losers. The idea that it is only the latter has been encouraged by neoliberal scholars in order to justify policies that lead to economic contraction every time upward pressure is placed on wages by low unemployment rates.”

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Book:Modern Monetary Theory: Key Insights, Leading Thinkers

Source: Modern Monetary Theory: Key Insights, Leading Thinkers

“MMT recognizes that finance is not a limited resource. It is manufactured and created in the act of spending. In the modern world, the exclusive monopoly to issue the currency endows governments with unparalleled spending power. For MMT, that the issuer can spend without technical constraints is a rather trivial observation. What MMT stresses is that taxes and borrowing cannot pre-fund the issuer of the currency, as the currency must be provided before it can be used for tax collections or bond purchases. The substantive question for MMT then is how to deploy this spending power for achieving the two central macroeconomic goals: full employment and price stability.”

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Book:Modern Monetary Theory: Key Insights, Leading Thinkers

Source: Modern Monetary Theory: Key Insights, Leading Thinkers

“Given the differences in pandemic-related job losses across the globe, the second lesson of the pandemic was that unemployment is a policy choice.”

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Book:Modern Monetary Theory: Key Insights, Leading Thinkers

Source: Modern Monetary Theory: Key Insights, Leading Thinkers

“inflation is often a supply-side phenomenon with multiple causes. Inflation generated by strong aggregate demand beyond full employment is rarely observed, apart from the immediate post-World War II (WWII) period.”

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Book:Modern Monetary Theory: Key Insights, Leading Thinkers

Source: Modern Monetary Theory: Key Insights, Leading Thinkers