Ep129[2/2]: Dirk Ehnts: Raising interest rates is like blowing up the garden to weed it

People Conversations by Citizens' Media TV

Welcome to episode 129 of Activist #MMT. Today's part two of my two-part conversation with Dirk Ehnts. Last week in , Dirk described his journey from a PhD in mainstream economics, to discovering and accepting MMT. Today, I ask questions circling around his new co-authored piece for the Gower Initiative, called . It starts with some very basic questions about how and why the central bank maintains the stability of the payment system. I then ask the specific mechanics of the central bank's raising its overnight target rate, and how it ultimately results in millions more becoming unemployed – and therefore more exploitable. I continue to struggle with these concepts, but after this conversation, I feel like the questions have become more clear. If you like what you hear, then I hope you might consider becoming a monthly patron of Activist #MMT. Patrons have exclusive access to several full-length episode, right now. A full list is , each with a brief highlight. Patrons also get the opportunity to ask my academic guests questions, like in last week's episode with Dirk, my previous interview , and my recent episode . They also support the development of my large and growing collection of . To become a patron, you can start by going to . Every little bit helps a little bit, and it all adds up to a lot. Thanks. And now, let's get right back to my conversation with Dirk Ehnts. Enjoy. Audio chapters 5:13 - Start of academic questions 5:35 - What is the nature of a catastrophic failure of the payment system? 12:12 - Central bank versus Blockchain, a financial justice system 14:59 - Warren Mosler story about company accidentally receiving millions extra from central bank. 15:24 - Central banks and reserves, parents and food for the kids, power struggles 21:36 - Increasing interest rates- the mechanics and its effects (dis-employing people) (transmission channels of monetary policy) 29:07 - The MMT view of interest rate targeting 36:53 - I try to restate 44:44 - Germany are Greece are both currency issuers, but with different power 50:48 - The difference in power between Germany and Greece 56:23 - Goodbyes and Levy summer session 1:01:02 - Duplicate of introduction, but with no background music (for listeners with sensitive ears)