How To Teach Money: Presentation at UNAM
As I previously announced, a 2 day conference begins today at UNAM in Mexico City:
I’m giving 3 talks. I thought those interested in MMT might want to view the presentation slides. Here you go:
5 Responses to “How To Teach Money: Presentation at UNAM”
Good summary. Thank you.
Thanks for sharing the slides!
Professor Wray, I'm going to talk to my local representative in Texas about MMT tomorrow. I'm joining an organization called Alliance for retired Americans in this meeting. They are going to voice their concerns about the cutting of government entitlements such as ss medicare and medicaid.This will be an office meeting where I believe no more than 10 people will be present. If I understand their (the ARA) line of argumentation correctly, they seem to be stuck in the year 1971, and like many who I talk to about this subject don't understand what you and the other professors at UMKC have been advacating for over 20 years now, seem to be short of words for a reply. Is there anything short and specific you can give me to present to the group and the congressman that will drive the benefits of MMT home with these people? I apologize for the short notice thnx
Johnny: I wrote many pieces on SocSec at http://www.levy.org. All are based on MMT understanding–even those I wrote before MMT was created. Also you might look at the joint piece with Yeva Nersisyan on Pensions, also at Levy perhaps in 2010. That ought to scare any retiree into supporting higher SocSec benefits.
I've been searching the internet unsuccessfully for an answer to the question of how Government spending creates money, i.e. the exact sleight of hand where that occurs. As you mention in Slide 24, Self-imposed Constraints mean it does not occur when the Gov writes a check, as those funds are deducted from a Tax and Loan account. Another self-imposed constraint I believe exists is that the Fed is prohibited from extending credit to the Treasury. Most people on the internet believe it occurs when the Fed buys Treasury securities, but that just exchanges savings money for checking money. I think you are getting at the answer on Slide 29, where you say "Doesn't matter whether the Treasury must have "money" in its acct at CB." Is that right and could you elaborate?