Applied MMT: Recent Episodes
Adam Rice & Ryan Benincasa
Discussing the economy, public policy, and current events through an MMT (Modern Monetary Theory) lens.
David Andolfatto (@dandolfa) Professor & Economics Department Chair at the University of Miami, joins Adam, Douglas, and Ryan to discuss:
- David's journey from construction to academia and the Federal Reserve.
- His focus on monetary theory and views on the essence of money.
- How MMT compares and contrasts with traditional economic theories.
- David's take on money's role in resource allocation and price setting.
- Historical inflation trends and major economic shifts, like the 1970s oil crises.
- Analysis of how changing interest rates can affect the economy.
- The difference between short-term rate changes and long-term interest rate impacts.
- Andolfatto's views on government responses to high interest rates and their effects.
- Economic complexity and the need for careful policy evaluation.
David Andolfatto received his Ph.D. in economics in 1994 from the University of Western Ontario, London, Canada. A native of Vancouver, British Columbia, he began his academic career in Canada as a professor of economics. In 2009, he was awarded the Bank of Canada Fellowship Award for his contributions in the theory of money, banking, and monetary policy. In that same year, David left Canada to become Vice President, and then Senior Vice President, in the research division of the Federal Reserve Bank of St. Louis, where he served as a senior policy advisor for James Bullard, CEO and president of the Bank. He left the Fed in 2022 to become Chair of the Economics Department at the University of Miami Patti and Allan Herbert Business School.
AppliedMMT.com
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Douglas (@MMTmacrotrader) on Twitter
Disclaimer: The content of this podcast is for informational purposes only and should not be construed as financial or investment advice. The views and opinions expressed in this podcast are those of the hosts and guests and do not necessarily reflect the official policy or position of any associated employers or organizations. Listeners should consider their financial circumstances and consult with a professional advisor before making any investment decisions
In this episode, Brett Scott joins Adam, Doug, and Ryan to discuss:
- Vertical and horizontal dimensions of money
- Crypto capturing attention through an asset-only view of money that people commonly hold
- Crypto ignoring double-entry accounting and liability side of money by treating units as assets alone
- Bitcoin's reliance on energy-intensive mining and whether it can truly function as a reliable inflation hedge
- Bitcoin promoters shifting narratives between Bitcoin being an asset, a monetary system, and a counter-trade
- Inflation scaremongering as a distraction from real issues like wage stagnation and wealth distribution
- Conservative monetary ideology benefitting creditors by constraining the political imagination of money
- MMT challenges to traditional assumptions by focusing on resources rather than financial constraints
- Interdependence as the starting point for economic analysis rather than independent actors in isolated markets
For more from Brett, visit his Substack: Altered States of Monetary Consciousness
AppliedMMT.com
AppliedMMT on Twitter
Douglas (@MMTmacrotrader) on Twitter
Disclaimer: The content of this podcast is for informational purposes only and should not be construed as financial or investment advice. The views and opinions expressed in this podcast are those of the hosts and guests and do not necessarily reflect the official policy or position of any associated employers or organizations. Listeners should consider their financial circumstances and consult with a professional advisor before making any investment decisions
In this episode, Brett Scott joins Adam, Doug, and Ryan to discuss:
- Brett's intellectual journey with MMT and how he was exposed to the ideas through different communities and events
- Challenges of separating fact from conspiracy theories
- Brett's perspective on tensions between using existing monetary systems and building alternative currencies
- Discussion of libertarian and anarcho-capitalist views in early crypto and the concept of "vulgar libertarianism"
- Evolution of understanding of limitations of blockchain and smart contract technology
- Skepticism towards claims of decentralization and feasibility of decentralized systems
- Brett's arguments for maintaining balances of power in the monetary system through preserving cash
- Implications of moving to a cashless society in terms of power, data control, and corporate manipulation
- Potential for central bank digital currencies to expand access to reserves or bypass banking sector
- Debate around proposals to issue CBDCs and commercial bank lobbying efforts
- Rohan Gray's E-Cash proposal as a progressive vision for digital cash with privacy protections
For more from Brett, visit his Substack: Altered States of Monetary Consciousness
AppliedMMT.com
AppliedMMT on Twitter
Douglas (@MMTmacrotrader) on Twitter
Disclaimer: The content of this podcast is for informational purposes only and should not be construed as financial or investment advice. The views and opinions expressed in this podcast are those of the hosts and guests and do not necessarily reflect the official policy or position of any associated employers or organizations. Listeners should consider their financial circumstances and consult with a professional advisor before making any investment decisions
In this episode, Derek McDaniel (@ratedisparity) joins Adam, Derek, and Ryan to discuss:
- Derek's Background: Transition from academics in mathematics and computer science to exploring economics and MMT.
- Journey into MMT: Early exposure to Austrian economics, online debates, and realization about the national debt.
- Current Stance on MMT: Emphasis on separating MMT into independent propositions like endogenous money, government finance, and price anchoring.
- Discussion on Endogenous Money: Explanation of endogenous money as creation of transaction mediums and the role of credit.
- Concept of Eurodollars: Exploration of Eurodollars and their impact on the economy.
- Rate Disparity in the Economy: Analysis of the wide range of wages and the implications of interest rates on inflation and economic cycles.
- Adaptive Equilibrium and Ecological Cycles: Connection between ecological cycles and economic cycles.
- Central Bank Policies and Econometrics: Challenges of interpreting central bank policies and skepticism about statistical models in economics.
- Interpreting Inflation Data: Discussion on the complexities of interpreting inflation data and economic policies.
- Turkey's Economic Situation: Brief discussion on Turkey's economy, neo-Fisherism, and the challenges in economic data interpretation.
- Public Understanding of MMT: Insights into the public's perception of MMT and the role of public finance.
Find more from Derek on Twitter and his website, ratedisparity.com.
AppliedMMT.com
AppliedMMT on Twitter
Douglas (@MMTmacrotrader) on Twitter
Disclaimer: The content of this podcast is for informational purposes only and should not be construed as financial or investment advice. The views and opinions expressed in this podcast are those of the hosts and guests and do not necessarily reflect the official policy or position of any associated employers or organizations. Listeners should consider their financial circumstances and consult with a professional advisor before making any investment decisions
In this episode, Adam, Ryan, and Doug interview Maren Poitras, creator of "Finding the Money", the documentary film about MMT.
They discuss:
- Maren's background
- Maren's inspiration for creating the film
- The film's development process
- Reception to early screenings
- Maren's observations regarding mainstream economics vs. heterodox economics
- Challenges in explaining MMT via film
- Future plans for the film
For more information and updates on the film, visit findingmoneyfilm.com.
Buy tickets to the Finding the Money film tour in Australia here: https://modernmoneylab.org.au/events/film-tour/
AppliedMMT.com
AppliedMMT on Twitter
Douglas (@MMTmacrotrader) on Twitter
Disclaimer: The content of this podcast is for informational purposes only and should not be construed as financial or investment advice. The views and opinions expressed in this podcast are those of the hosts and guests and do not necessarily reflect the official policy or position of any associated employers or organizations. Listeners should consider their financial circumstances and consult with a professional advisor before making any investment decisions
Adam, Doug, and Ryan wrap up 2023, discussing their learnings, surprises, and expectations for 2024:
- The strong GDP growth and low unemployment in 2023, noting how rate hikes seemed to stimulate the economy, contrary to popular belief.
- Higher government spending and lower inflation in 2023
- The importance of understanding fiscal policy's impact on the macroeconomy while other factors like bank credit and money supply are secondary.
- The relationship between fiscal spending, bank credit, and economic trends, noting the trend of fiscal dominance in 2023.
- Surprise at the rapid fall in inflation and the decline in oil prices, which wasn't anticipated.
- How bank credit and loans behaved in 2023, with a focus on the difference between bank credit contraction and expansion in loans and leases.
- Potential risks and outcomes if the Fed decides to cut rates in 2024
- Predictions for 2024
AppliedMMT.com
AppliedMMT on Twitter
Douglas (@MMTmacrotrader) on Twitter
Disclaimer: The content of this podcast is for informational purposes only and should not be construed as financial or investment advice. The views and opinions expressed in this podcast are those of the hosts and guests and do not necessarily reflect the official policy or position of any associated employers or organizations. Listeners should consider their financial circumstances and consult with a professional advisor before making any investment decisions
In this episode, Ritik Goyal joins Adam, Ryan, and Douglas to discuss:
- Ritik's journey from working at Bridgewater to co-founding "The Monetary Frontier" on Substack
- How Ritik was drawn to MMT as a framework that accurately describes economic flows and policy impacts, especially in the context of austerity politics.
- Ritik's nuanced view on MMT, particularly questioning the idea of a zero neutral interest rate and its effect on the availability of safe assets like treasuries.
- The historical relationship between interest rates, inflation, and the Federal Reserve's role, suggesting that the Fed's influence is more psychological than direct.
- The primary role of fiscal policy over monetary policy in economic outcomes, challenging conventional views on the Fed's effectiveness.
- Analysis of current market trends, the potential impact of Fed rate cuts, and the risks of a self-reinforcing economic slowdown.
- The effectiveness of asset price inflation as a stimulus for the broader economy, highlighting the importance of safe assets in economic stability.
- The importance of understanding economic mechanics and the role of MMT in shaping economic discourse, emphasizing the need for a more nuanced understanding of fiscal and monetary interactions.
"The Fed Does Not Exist" by Ritik Goyal
AppliedMMT.com
AppliedMMT on Twitter
Douglas (@MMTmacrotrader) on Twitter
Disclaimer: The content of this podcast is for informational purposes only and should not be construed as financial or investment advice. The views and opinions expressed in this podcast are those of the hosts and guests and do not necessarily reflect the official policy or position of any associated employers or organizations. Listeners should consider their financial circumstances and consult with a professional advisor before making any investment decisions
In this episode, Douglas of MMT Macro Trader joins Adam and Ryan discuss:
- Big announcement - the future of AppliedMMT & MMT Macro Trader!
- 4.9% Q3 GDP print
- Is Fintwit connecting the dots on the interest income channel?
- What drove GDP growth in 2023?
- The relationship between interest rates and the economy
- Potential systemic risks in the economy today
- The “failed treasury auction” on November 9
- Powell’s recent comments – has the Fed changed its thinking?
AppliedMMT.com
AppliedMMT on Twitter
Douglas (@MMTmacrotrader) on Twitter
Disclaimer: The content of this podcast is for informational purposes only and should not be construed as financial or investment advice. The views and opinions expressed in this podcast are those of the hosts and guests and do not necessarily reflect the official policy or position of any associated employers or organizations. Listeners should consider their financial circumstances and consult with a professional advisor before making any investment decisions
In this episode, Charles Hayden joins Ryan to discuss:
- Warren Mosler’s thesis that the fed has the rate hikes backwards
- MMT academics countering mainstream economists
- Mainstream economists thinking unemployment is necessary to reduce inflation
- Saudi oil prices & their impact on inflation
- Negative GDP prints in 2022 & recession fears
- Bank credit increasing despite rate hikes
- Fed collateral rules rather than rate hikes causing regional bank failures
- Marc Goldwein’s hypocrisy on deficits & rate hikes
- The government as the source of the price level
- Volcker-era inflation & policy response
- Deregulation of energy under Jimmy Carter and its impact on inflation
- Mosler’s “term structure of prices”
- CPI as a look backwards, not into the future
- The policy rate as the forward inflation rate
- MMT & electoral politics
- Warren Mosler as this generation's Keynes
- Mosler's car company
- The real looming recession threat
- Charles' investment strategy
- Charles' conversation with Larry Summers
- The state of MMT activism
Links
- Charles on Twitter (@CarlitosMMT)
- Mosler/Murphy debate (organized by Charles)
- MMT, Finance, and Interest Rate Policy
In this episode, Adam and Ryan discuss:
- Shout out to Nick Gomez of ANG Traders (@ANGTraders)
- Fears of market liquidity drain during TGA refill in late May/early June
- The mechanics of the TGA refill
- The Fed's reverse repo facility
- MMT being blamed for inflation
- Randy Wray and Yeva Nersisyan's policy recommendations at the beginning of the pandemic
- MMT's opposition to UBI
- Are rate hikes keeping companies alive?
- Addressing the notion that MMT doesn't make predictions
- Ongoing effects of rate hikes on the economy
- Outlook on the economy going forward
In the second part of our two-part conversation, Nick Gomez of ANG Traders joins Adam and Ryan to discuss:
- The causes of post-COVID inflation
- Unemployment benefits & "no one wants to work anymore"
- The US fiscal situation in 2023 vs. 2022
- Shortages in the housing market
- How Nick analyzes the stock market
- The effects of treasury issuance
- Accounting between the Fed & Treasury
- The relationship between treasuries and the stock market
- Warren Mosler being denied a meeting with the Fed
Links:
- ANG Traders on Twitter
- ANG Traders on Seeking Alpha
In this episode, Nick Gomez of ANG Traders joins Adam and Ryan to discuss:
- Nick's background in physics/math and how he became interested in MMT
- Reactions to Nick's work on Seeking Alpha
- Understanding the US dollar, national debt, and debt ceiling
- Treasuries as UBI for people who already have money
- The relationship between stocks & interest rates
- Nick's bullish outlook on the US economy
- Challenges in explaining MMT to people
- How rate hikes are impacting inflation
- Lack of discussion regarding fiscal flows in financial media
Links:
- ANG Traders on Twitter
- ANG Traders on Seeking Alpha
In this episode, Adam and Ryan discuss:
- The state of the economy & stock market
- Additional rate hikes in Argentina
- Ryan's attendance at the Warren Buffet/Berkshire Hathaway shareholder meeting
- Profit margins, inflation, and bank lending
- Michael Green (@profplum99) vs. Warren Mosler's economic outlooks
- "Money" by James Madison
In the second episode of this two-part interview, Warren Mosler, one of the "founders" of MMT, joins Adam and Ryan to discuss:
- Warren’s take on the inverted yield curve
- Cost of capital & entrepreneurship
- Effects of low interest rates
- Where does additional interest income go? Is it driving growth?
- Interest rates and equity valuations
- Fiscal contraction in early 2022
- Lack of conversation around fiscal policy as opposed to monetary policy
- How oil prices are determined
- Oil prices as a tail risk
- HTM securities & bank regulation
- Framing the national debt as the "national credit"
Links- Warren Mosler on Twitter
- Warren's website/blog
- Warren's publications
- Warren's MMT White Paper
- Introductory MMT resources
- Pocket Change podcast
- NYC Deficit Owls Meetup
In the first episode of this two-part interview, Warren Mosler, one of the "founders" of MMT, joins Adam and Ryan to discuss:
- Warren's perspective on rate hikes vs. other MMTers
- Warren's meeting with George W. Bush's Chief of Staff, Andrew Card
- Warren's conversations with Paul Krugman on deficits/inflation
- Warren's conversations with Argentina's central bank on interest rates/inflation
- Forward outlook for rate hikes in the US
- Recent banking crises in the US
- Whether or not anyone at the Fed recognizes Warren’s perspective on rate hikes
- Argentina's inflation situation
- Our institutional structure & standard of living
- Ryan’s concept of the “real resource dividend”
- Trump and Biden's tariffs
- COVID’s effect on emission reductions
Links- Warren Mosler on Twitter
- Warren's website/blog
- Warren's publications
- Warren's MMT White Paper
- Introductory MMT resources
- Pocket Change podcast
- NYC Deficit Owls Meetup
In this episode, Adam and Ryan to discuss:
- Recent Richard Murphy/MMT Twitter controversy
- The Republican proposal to put the US back on a gold standard
- Public vs. private solutions to real estate issues
- Ryan’s concept of the “real resource dividend”
- Thoughts on the Job Guarantee
In this episode, Adam and Ryan to discuss:
- Big banks moving deposits to FirstRepublic
- Hold-to-maturity
- Misunderstandings around banking
- Solvency issues vs. liquidity issues
- Bitcoin and banking
In this episode, Adam and Ryan to discuss:
- The failure of Silicon Valley Bank
-
Morgan Ricks' commentary on bank runs and game theory
Links: -
Morgan Ricks on Twitter
- Introductory MMT resources
- Pocket Change podcast
- NYC Deficit Owls Meetup
In this episode, Bijou Smith of MMT Macro Trader joins Adam and Ryan to discuss:
- Bijou's background in physics and how he became interested in MMT
- Why MMT is important
- The relationship between economics & physics
- How Bijou and Douglas started collaborating on MMT Macro Trader
- Using machine learning & neural networks to model the macroeconomy and stock market indices
- How the job guarantee fits into capitalism
- Adam Smith, economics, and moral philosophy
Links:
- MMT Macro Trader on Patreon
- MMT Macro Trader on Twitter
- Bijou on Twitter
- Bijou's website
-
Applied MMT #3 with Douglas of MMT Macro Trader
-
Introductory MMT resources
- Pocket Change podcast
- NYC Deficit Owls Meetup
In this episode, Adam and Ryan discuss:
- Whether or not all MMTers believe interest rate hikes are expansionary
- The newest PCE inflation data
- Retail inflows to the stock market
- Interest rates and asset bubbles
- The post-2008 venture capital boom
- Gambling apps & cryptocurrency
Links:
- Introductory MMT resources
- Pocket Change podcast
- NYC Deficit Owls Meetup
NOTE: The original audio file for this episode had syncing issues. The corrected audio is available as of 2/22/23 at 9:35 AM ET.
In this episode, Adam and Ryan discuss:
- The disaster in East Palestine, OH
- The UFO/UAP incidents
- The January retail sales boom
- Energy prices and their inflationary effects
- The costs & benefits of trade deficits
Links:
- Introductory MMT resources
- Pocket Change podcast
- NYC Deficit Owls Meetup
In this episode of Applied MMT, Adam and Ryan discuss:
- Edward Harrison's recent tweet on the expansionary effects of interest income
- The differences & similarities between today's rate hikes and the Volcker-era
- Credit growth despite rate hikes
- Joey Politano's recent thread on rate hikes
- Bank lending post-2008 vs. today
- In celebration of Superbowl Sunday, the institutional structure of the NFL and how it contributes to the league's success
In this episode, Douglas of MMT Macro Trader joins Adam and Ryan to discuss:
- The January jobs explosion
- The debt ceiling
- Endogenous vs. exogenous money
- Banks as finance "franchises"
- The Eurodollar & shadow banking
- Appreciating vs. depreciating currencies
- The effects of rate hikes and what to expect in the next few months
- Whether or not the Fed will pivot on rate hikes
Links:
- Introductory MMT resources
- Pocket Change podcast
- NYC Deficit Owls Meetup
- MMT Macro Trader on Patreon
- MMT Macro Trader on Twitter
In this episode, Adam and Ryan discuss:
- Recession fears
- The "white collar" recession
- The US debt ceiling
- The trillion dollar platinum coin proposal
Links:
- Introductory MMT resources
- Pocket Change podcast
- NYC Deficit Owls Meetup
In this episode, Adam and Ryan discuss how they came to learn about MMT and why they believe it's so important. They also discuss their future plans and goals for the podcast.
They touch on:
- MMT's accuracy as a description of the financial system
- The COVID pandemic and policy response
- Inflation
- Quantitative easing
- Interest rate hikes and their effects
Links:
- Introductory MMT resources
- Pocket Change podcast
- NYC Deficit Owls Meetup