Jun 22, 2019
There was a time when
Mathew Forstater & Warren Mosler would conduct regular counts
of MMT believers. There were 11 or 12, and they knew them all well.
In this interview, Forstater takes us back to the late 1990s, when
Modern Monetary Theory first took root in academia.
Today he is Research
Director of the Global Institute for Sustainable Prosperity, but
his story begins with his first post-doctorate teaching job. He
secured a summer internship for an undergrad named Pavlina
Tcherneva. Her assignment: write a critical review of Mosler’s
they formed resulted in the creation of a research institute, the
Center for Full Employment and Price Stability at the Levy
Institute. Randall Wray and Stephanie Kelton descended upon it.
After a couple of years, the MMT nucleus moved to UMKC, where they
established an interdisciplinary program. Today it’s an
international movement with a reach into other disciplines and far
beyond the walls of universities.
the importance of keeping policy discussion on the table. What
distinguishes them from mainstream economics is they recognize the
need to be grounded in reality. MMT is not just
Steve asks him to
talk about some of the specific policies associated with MMT.
Forstater believes that the Job Guarantee should be a central piece
of Green New Deal by demanding only sustainable jobs, or jobs with
minimal negative effect. The federal government isn’t subject to
the pressures of the private sector which, by the very nature of
the capitalist economy, must minimize production costs regardless
of environmental impact. The JG can be a vehicle for other policies
as well, establishing a minimum wage and standards for health care
Global Institute for