Randall Wray is one of the pioneers of Modern Monetary Theory (MMT), which challenges mainstream economic ideas about currency, debt, and inflation. MMT, according to Wray, offers a way out of the austerity bias in economics and expands the role of government creation of money. He is the author of ‘Modern Money Theory’ (2012).
Wray is also an international authority on the late Hyman Minsky related to money and finance and published ‘Why Minsky Matters’ in 2015.
How this differs from the mainstream
Mainstream economic theory treats governments as having to tax before they can spend, and prioritises running a balanced budget over time. Running government surpluses is eulogised, as if governments face the same financial constraints as households. Government debt, denominated in the national currency, is seen as a serious problem. Unemployment is accepted as the price one has to pay for low inflation.
For more of Randall's work see:
- 'Modern Monetary Theory - A Debate: Randall Wray' an interview on MMT by The Real News Network, April 2019
- 'Modern Monetary Theory Goes Global', profile/interview with Randall Wray in Bloomberg Businessweek, July 2019
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