Soft Currency Economics II: The Origin of Modern Monetary Theory (MMT – Modern Monetary Theory) (Volume 1)

Product Description

Soft Currency Economics is the little book that could logically, in both real and nominal terms, legitimately challenge many of the core held beliefs of the mainstream classical and neo-classical schools of economics.
It is a corner stone publication for the new, widely popular fresh approach to economics that has come to be called Modern Monetary Theory (MMT).
It explains with actual facts, not theory, and with non-technical language, the true operational realities of our monetary system (central banks and private banks).
The author, a 40 year ‘insider’ in monetary operations, and a very successful fixed income hedge fund manager, wrote this book in 1993 after witnessing the markets drastically discount sovereign debt on the errant belief that market forces could force nations into default on debt payable in their own currency, and that austerity was the only solution.
This was contrary to the author’s understanding of what are called fiat currencies, where governments always have the ability to meet all obligations in a timely manner.
As a result of this experience, the author took up the task of educating government officials on how the monetary system operated with the hope that with this understanding they would be free to ensure that the government acted for the public purpose and achieved their stated goals of full employment and price stability.
Initially published in 1993, this book will utterly convince many readers that what they thought they knew about monetary policy is wrong.

The book describes:

what is money;
why debt monetization and the money multiplier are myths;
how fiscal and monetary policy can be used effectuate full employment;
deficits do not cause countries to default on their debt unless that is the decision.

From the Author

I m in Zurich on March 25 at the Park Hyatt Grand Ballroom at 4 p.m. making a presentation at the CrossRoads Workshops on
Emerging markets and the Decadence of the European Model. If you want to meet, pop on by.

This book provides a good explanation of monetary operations (central and commercial banks). It explains an economic/monetary system that I learnt from trading and making money versus getting a doctorate in economics. It is probably the reason why I could see it from “outside of the box”. Another book of mine, 
The Deadly Seven Innocent Frauds of Economic Policy
 is written for the general public and explains, using many of the economic/monetary concepts in this book, the divergence between ”
approved belief
” and ”
what was reality
” in economics. The “approved belief” system for monetary policy is in many cases ”
college approved
” and is a long way from reality. For example, the notion that deficits are bad for the economy and the population, when in fact close examination reveals that government deficits are private sector savings to the penny. Review the Introduction of the book. It may very well shock many economists because the 
Innocent Frauds
 are primarily based on what has been learnt. Any professors or TV hosts that read any of my books, I am available to debate the issues raised in my books. Contact information is in the books.

FYI – Professor Stephanie Kelton did a great job explaining Modern Monetary Theory on Lauren Lyster’s show on December 12, 2012. Find the video.

From the Back Cover

“In this model of clarity, Warren Mosler debunks (in his own words) so many of the ‘innocent frauds’ that have contributed to our current economic and social malaise. More importantly, Mosler is no Ivory Tower academic.  He has been a highly successful money manager, and his characterization of our modern monetary system is spot on:  Mosler far more accurately depicts market realities than any of the self-styled “mainstream” economics textbooks, which dominate in the halls of academe, and in the corridors of power in Washington, Brussels, and Asia. This book should not only become mandatory reading for students of economics, but any pol