Episode 174

full
Published on:

21st Sep 2023

Season Premiere with PJ Pierre on MMT, Macro and Fiscal Dominance

In this episode, PJ Pierre, a leading voice in the field of Modern Monetary Theory (MMT), joins the ReSolve team for a deep dive into the complexities and implications of MMT. The conversation explores the role of government in fiscal policy, the impact of deficit spending, and the potential consequences of MMT on the economy.

Topics Discussed

• The discussion begins with an examination of the conventional belief that government must first collect taxes before spending, and how this view influences perceptions of government solvency and private investment.

• The conversation then shifts to the sequence of government spending and taxation, and the implications of a floating exchange system.

• PJ Pierre provides an explanation of how the government can issue currency and the potential consequences, such as inflation or a collapse of the currency.

• The role of the banking system within the MMT framework is also discussed, highlighting the complexity of this economic model.

• The conversation delves into the concept of fiscal dominance and the potential for the Federal Reserve to lose its monetary policy tool for regulation.

• The episode concludes with a discussion on the impact of inflation and the role of demographics in economic demand.

This episode offers a comprehensive exploration of Modern Monetary Theory, providing valuable insights for anyone interested in understanding the potential implications of MMT on fiscal policy and the economy. PJ Pierre's expertise provides a nuanced perspective on this complex economic model, making this episode a must-listen for those interested in economic theory and policy.


This is “ReSolve’s Riffs” – published on YouTube every Friday afternoon to debate

the most relevant investment topics of the day, hosted by Adam Butler, Mike

Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of

ReSolve Asset Management.

*ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered

with the Commodity Futures Trading Commission as a commodity trading advisor

and commodity pool operator. This registration is administered through the

National Futures Association (“NFA”). Further, ReSolve Global is a registered

person with the Cayman Islands Monetary Authority.

Next Episode All Episodes Previous Episode

Listen for free

Show artwork for Resolve Riffs Investment Podcast

About the Podcast

Resolve Riffs Investment Podcast
Welcome to ReSolve Riffs Investment Podcast, hosted by the team at ReSolve Global*, where evidence inspires confidence.
These podcasts will dig deep to uncover investment truths and life hacks you won’t find in the mainstream media, covering topics that appeal to left-brained robots, right-brained poets and everyone in between. In this show we interview deep thinkers in the world of quantitative finance such as Larry Swedroe, Meb Faber and many more, all with the goal of helping you reach excellence. Welcome to the journey.

*ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.