Ever heard the name of Warren Mosler? He used to run a hedge fund. He is a simple person who lives in a Caribbean tax haven and has the love for fast cars. But the thing which makes gives the hedge funder the edge is his eagerness to learn things.
More of an engineer rather than an ideologue, Warren likes to work out how the things work, and then use the same to make the things work better. He has been successful in implementing his formula in getting over racing cars and working out how interest rate cuts work. He proved it by building a passenger ferry in the US Virgin Islands to cut travel costs. It is quite evident that he has found a loophole in the world economics.
And now it seems that he has finally convinced a majority with his home-brewed doctrine, named as the Modern Monetary Theory, gaining an unlikely foothold in the Democratic Party. Not only this, several other candidates are coming out with plans which follows the footsteps of Warren. So what’s the theory of Warren?
The main argument which has been put forward is the fact that the government with the right to print their own currencies can never go broke. They can always spend than it is usually supposed. Not only this, they don’t have to collect taxes for it. One thing which they should spend money on is job guarantees. They should offer work to anyone who wants it.
Source- Bloomberg
