Mosler was a professor at the University of Bergamo and, since most of the signers of this article are Italian, I assume that they are associates of his through that connection.
Yes, Mosler has been very important for us Italians, that's true, but there is also a reason for this. Just think about Articles 1 to 4 of our Constitution, which state:
Article 1
Italy is a democratic Republic, founded on LABOR.
Sovereignty belongs to the people and is exercised in the forms and within the limits of the Constitution.
Article 2
The Republic recognizes and guarantees the inviolable rights of the person, both as an individual and within the social groups where their personality is expressed, and demands the fulfillment of the fundamental duties of political, economic, and social solidarity.
Article 3
All citizens have equal social dignity and are equal before the law, without distinction of sex, race, language, religion, political opinions, personal and social conditions.
It is the duty of the Republic to remove the economic and social obstacles that, by limiting the freedom and equality of citizens, prevent the full development of the human person and the effective participation of all workers in the political, economic, and social organization of the country.
Article 4
The Republic recognizes the right of all citizens to WORK and PROMOTES the conditions that make this right EFFECTIVE.
Every citizen has the duty, according to their ability and choice, to carry out an activity or function that contributes to the material or spiritual progress of society.
"Warren Mosler, founding Father of Mosler Economics and co-founder along with William Mitchell of MMT deserves the Nobel Prize in Economics" That's a terrible thing to say about anyone! ;-)
Haha I had exactly the same response — I’m not sure Mosler would accept it given the (typically unfounded) criticism he’s received from some of its previous recipients…
…so I hate to address the elephant in the room. But ultimately, if he does not receive the Nobel prize, that will be the main reason.
All the work on spending for full employment, 2% or even 0% are so critical for where monetary and fiscal policy go next. But, if we look only at the forensic accounting, no agenda, just examining the accounting, there is a problem.
“Many of the "myths" that have gradually emerged due to a lack of understanding of the workings of the monetary system”
Agreed.
“This sequence, in which state spending necessarily precedes revenue collection, deviates from traditional economic models that start with tax collection and assume that government spending is constrained by revenue”
And unfortunately the forensic accounting shows that every Gov in the world that deficit spends must borrow those funds.
We can easily confirm this simply by determining if the Treasury has to pay those funds back, which means taxpayers must pay those funds back.
“Mosler's insight into Treasury and Central Bank accounting is the scientific core of MMT, which has the potential to rewrite the rules of global economic policy. It is a scientific approach that challenges many of the traditional beliefs about debt, public spending, and inflation. For this reason, it deserves recognition, such as the Nobel Prize in Economics.”
There is no Central Bank in the world that issues new money for their Treasury to spend without repayment, they ONLY issue to lend. And there is a simple accounting to show this.
Central Bank Liabilities = CB Assets - CB Equity
If CB Assets = 0, so instead of issuing to buy Assets the CB issues to pay the bills of Treasury, then:
New CB Liabilities = - CB Equity.
The CB would be spending their own Equity and would be bankrupt in 3 days.
Treasury is revenue constrained, and has to borrow to deficit spend. And that puts a wrench in the story…
Mosler was a professor at the University of Bergamo and, since most of the signers of this article are Italian, I assume that they are associates of his through that connection.
Yes, Mosler has been very important for us Italians, that's true, but there is also a reason for this. Just think about Articles 1 to 4 of our Constitution, which state:
Article 1
Italy is a democratic Republic, founded on LABOR.
Sovereignty belongs to the people and is exercised in the forms and within the limits of the Constitution.
Article 2
The Republic recognizes and guarantees the inviolable rights of the person, both as an individual and within the social groups where their personality is expressed, and demands the fulfillment of the fundamental duties of political, economic, and social solidarity.
Article 3
All citizens have equal social dignity and are equal before the law, without distinction of sex, race, language, religion, political opinions, personal and social conditions.
It is the duty of the Republic to remove the economic and social obstacles that, by limiting the freedom and equality of citizens, prevent the full development of the human person and the effective participation of all workers in the political, economic, and social organization of the country.
Article 4
The Republic recognizes the right of all citizens to WORK and PROMOTES the conditions that make this right EFFECTIVE.
Every citizen has the duty, according to their ability and choice, to carry out an activity or function that contributes to the material or spiritual progress of society.
"Warren Mosler, founding Father of Mosler Economics and co-founder along with William Mitchell of MMT deserves the Nobel Prize in Economics" That's a terrible thing to say about anyone! ;-)
Haha I had exactly the same response — I’m not sure Mosler would accept it given the (typically unfounded) criticism he’s received from some of its previous recipients…
Exactly!
Wow! Fantastic article!
…so I hate to address the elephant in the room. But ultimately, if he does not receive the Nobel prize, that will be the main reason.
All the work on spending for full employment, 2% or even 0% are so critical for where monetary and fiscal policy go next. But, if we look only at the forensic accounting, no agenda, just examining the accounting, there is a problem.
“Many of the "myths" that have gradually emerged due to a lack of understanding of the workings of the monetary system”
Agreed.
“This sequence, in which state spending necessarily precedes revenue collection, deviates from traditional economic models that start with tax collection and assume that government spending is constrained by revenue”
And unfortunately the forensic accounting shows that every Gov in the world that deficit spends must borrow those funds.
We can easily confirm this simply by determining if the Treasury has to pay those funds back, which means taxpayers must pay those funds back.
“Mosler's insight into Treasury and Central Bank accounting is the scientific core of MMT, which has the potential to rewrite the rules of global economic policy. It is a scientific approach that challenges many of the traditional beliefs about debt, public spending, and inflation. For this reason, it deserves recognition, such as the Nobel Prize in Economics.”
There is no Central Bank in the world that issues new money for their Treasury to spend without repayment, they ONLY issue to lend. And there is a simple accounting to show this.
Central Bank Liabilities = CB Assets - CB Equity
If CB Assets = 0, so instead of issuing to buy Assets the CB issues to pay the bills of Treasury, then:
New CB Liabilities = - CB Equity.
The CB would be spending their own Equity and would be bankrupt in 3 days.
Treasury is revenue constrained, and has to borrow to deficit spend. And that puts a wrench in the story…