EconoMonitor

Great Leap Forward

Warren Mosler, Car Guy

A lot of you know Warren Mosler as the MMT guy. He was the first one to understand the “monetary operations”–the coordination between the Fed and Treasury–and thus to recognize that sovereign treasuries really do not “borrow” back their own currency in order to spend. Bond sales by Treasury or by Fed are “a reserve drain”; you can think of these bonds as an “IRMA” (interest rate maintenance account) to prevent budget deficits from driving interest rates to zero. That was a brilliant insight.

But Warren is a major innovator in other areas, too: Cars, Delivery Vans, and Yachts.

Here’s a moving Warren Mosler retrospective on building cars:

6 Responses to “Warren Mosler, Car Guy”

Erik JochemJune 13th, 2013 at 8:39 pm

it's quite striking to see the parallels between Warren's excellency in cars and in understanding fiat Money practice – and the desinterest of the mainstram in both areas for his achievements. But praise to him and to you too Randall for keeping us a-float with your insights. Let's hope smart ideas will prevail – in cars and in economic thinking. (Sorry for being emphatic !).

Charles HaydenJune 15th, 2013 at 5:54 pm

Lerner's car analogy best understood by a car guy. Spooky but no coincidence. Warren Mosler is the People's Champ!

P.S. I've never heard Warren curse, but he was still quoting someone else.

L. Randall Wray L. Randall WrayJune 16th, 2013 at 1:47 am

Warren is always a gentleman. The worst I’ve ever heard him remark is that someone might not have the necessary “horsepower” to understand an argument. He never attributes motives, only limited capacity or willingness to understand. It is an attitude to which we all can aspire.

MORGANEJuly 7th, 2013 at 7:03 am

your video conversation is very knowledgeable to me. I like very much your moving Warren Mosler retrospective on building cars. As a young generation I highly appreciate your clear concept which is very much learn-able to me.

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