L. Randall Wray.
L. Randall Wray, professor of economics at Bard and senior scholar at the Levy Institute, speaks with Mike Carruthers on Something You Should Know
about the definition of money and how it actually works. “We need to get away from this notion that money is something we can get our hands on,” Wray explains. “If you go back in time, most market activity as far back as we go took place on the basis of credit and debit. And really that is how we should look at money. Money is credit in your hands and it’s somebody’s debt.” Wray asserts that the Federal Reserve cannot run out of money. “Money is a keystroke credit to an account . . . As long as there is one person left at the Fed with one finger, they can keystroke some more credits . . . Can the government or the private sector spend too much and cause inflation, which will reduce the value of the money? Yes, that can happen.” Wray’s newest book Money for Beginners: An Illustrated Guide
was published in May 2023. Professor Wray’s interview begins at 24:00.