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Randall Wray 74 posts 0 comments

L. Randall Wray is a professor of economics and research director of the Center for Full Employment and Price Stability at the University of Missouri–Kansas City. His current research focuses on providing a critique of orthodox monetary policy, and the development of an alternative approach. He also publishes extensively in the areas of full employment policy and the monetary theory of production. Wray received a B.A. from the University of the Pacific and an M.A. and a Ph.D. from Washington University, where he was a student of Hyman Minsky.

Monetary System

It is Krugman who has shined the headlights on the difference between a currency issuer and a…

Randall Wray Dec 21, 2011

It seems to have been none other than Paul Krugman who made it safe for others to adopt MMT. He shined his headlights on the obvious: the reason why interest rates on government debt are not exploding in countries like Japan, the US, and…

Monetary System

Government Spending with Self-Imposed Constraints

Randall Wray Dec 20, 2011

Let’s see how it is really done in the US—where the Treasury really does hold accounts in both private banks and the Fed, but can write checks only on its account at the Fed. Further, the Fed is prohibited from buying Treasuries directly…

Economy

Bernanke’s 29 Trillion Dollar Fog of Deceit

Randall Wray Dec 13, 2011

Congress should immediately call Chairman Bernanke in for testimony on the veracity of the Fed’s response to the Bloomberg report. It should demand a comprehensive accounting for all the Fed’s commitments, by institution that benefitted.…

Monetary System

The Euro, Currency Sovereignty and Adopting a Foreign Currency

Randall Wray Dec 5, 2011

It is apparent that adoption of a foreign currency is equivalent to running a very tight fixed exchange rate regime. It provides the least policy space of any exchange rate regime. This does not necessarily mean that it is a bad policy. But…

Economy

Time to Demand Transparency and Accountability of Our Public Stewards

Randall Wray Nov 30, 2011

When will we begin to reign-in the Fed and hold it accountable? And will we let the Fed bail-out Wall Street without Congressional approval of funding the next time it crashes? We need to answer these questions soon, because it is beginning…

Monetary System

Sovereign Currency and Government Policy in an Open Economy

Randall Wray Nov 28, 2011

While the usual assumption is that current account deficits lead more-or-less directly to currency depreciation, the evidence for this effect is not clear-cut. Implications of this depend on the currency regime. According to the well-known…

Monetary System

National Solvency and the Special Case of the US Dollar

Randall Wray Nov 21, 2011

The US can run budget deficits that help to fuel current account deficits without worry about government or national insolvency precisely because the rest of the world wants Dollars. But surely that cannot be true of any other nation.…

Economy

Warren Mosler’s Big Fat Greek MMT Exit Strategy

Randall Wray Nov 17, 2011

It is beginning to look like a Greek exit is ever more likely, which means that the end of the EMU could be near. Even if exits and a break-up are not inevitable, countries should have a plan on the shelf. It is clear that Germany is…

Political Economy

The Euro Zone: A System Designed to Fail, WILL Fail

Randall Wray Nov 16, 2011

Monetary union was not a good idea, even in the best of circumstances. Time to abandon the failed experiment?

Monetary System

What if foreigners dump government bonds?

Randall Wray Nov 15, 2011

when government deficit spends, some of the claims on government will end up in the hands of foreigners. Does this matter?