Richard J Murphy - What are the limits to government money creation? -
This is the third in a series or four videos exploring the value of money created to mark the 50th anniversary of the final end of the gold standard, which happened when President Richard Nixon of the USA broke the link between the dollar and gold on 15 August 1971.
In previous videos I have explained that money is not asset backed now. The only thing that gives money it value is the government's promise to pay. Then I have explained why in a well controlled economy that promise is easy for a government to make because it's backed by its ability to tax.
In this video I explain that the limit on the government's ability to create money is not now the amount of gold it has, but instead the resources it can command in the real economy that it manages. Those resources are at their limit when there's full employment - and for that reason full employment is now the point where the limit to money creation is reached.
ABOUT RICHARD MURPHY
Richard Murphy is a chartered accountant. After training with what is now KPMG he established his a firm of accountants in London, of which he was subsequently senior partner, in parallel with a career as an entrepreneur and company director which lasted until his early 40s. He then moved to a career in campaigning and academia. He co-founded the Tax Justice Network in 2003, the Green New Deal in 2008, the Fair Tax Mark in 2013 and the Corporate Accountability Network in 2019. From 2015 to 2020 he was Professor of Practice in International Political Economy at City, University of London and is now Visiting Professor of Accounting at Sheffield University Management School. His best known book is 'The Joy of Tax'.
Follow Richard on his Twitter: www.twitter.com/RichardJMurphy or on his blog: http://www.taxresearch.org.uk/Blog/
Recorded at Spotted in Studios
http://www.youtube.com/c/SpottedinStudios