MMT: The Fed Neither "Has" Nor "Doesn't Have" Dollars
Warren Mosler, one of the founders of Modern Money Theory, on how the Federal Reserve neither "has" nor "doesn't have" dollars because it is the source of dollars, much like the scorekeeper in a game neither "has" nor "doesn't have" points because it is the source of points. It simply increases or decreases the account of whomever it transacts with.
This is true of any government/central bank which issues its own currency. However, on a gold standard or other fixed exchange rate regime, the government/central bank must be careful about the effects of its spending and taxing, because they may negatively affect its ability to maintain the exchange peg.
See the whole video here: • Modern Money & Public Purpose 2: Governmen...
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