Scotonomics

In this episode of the scotonomics podcast, we take a live recording from a landmark presentation by Warren Mosler, the founder of Modern Monetary Theory, delivered in Cardiff. It was the first time he considered how his insights could be used to support the successful economic independence of both Scotland and Wales.  In the audience were a former member of the Senedd Cymru and three prospective candidates who are very likely to be part of the 2026 intake. As ever, Warren challenges mainstream economic thinking. He explains how the standard mainstream economic narrative holds most governments hostage, based as it is on the economic understanding that has not shifted since the end of the gold standard - something that hasn’t been applicable for almost fifty years.   Warren explains how the MMT lens would help policymakers understand the potential to expand the capacity of Wales and Scotland should they become independent and launch their own currency.  Rigidly holding to gold standard thinking in a world of fiat money creation - where money is not linked to a fixed exchange rate or a commodity like gold - stymies progressive policies. With an up-to-date understanding, governments will be able to create a wellbeing economy based on full employment.  Warren tackles six areas where the mainstream has things “backwards”. He focuses on trade, savings and investment, jobs, the money creation sequence, unemployment, and interest rates.  He applies his MMT principles directly to the questions facing an independent Wales and Scotland, offering a fresh and radical perspective on how these nations could approach economic sovereignty. To conclude, Warren highlights the challenges faced by progressive administrations in Edinburgh and Wales. Warren says, “ you are up against people having things backwards. So, when you're trying to explain policy and what will work, what will be progressive, it's a significant obstacle. I just don't want you to underestimate the size of that obstacle.” Support our work. Join us on Patreon. https://www.patreon.com/Scotonomics Or visit the website https://www.Scotonomics.org Hosted on Acast. See acast.com/privacy for more information.

In this episode of the Scotonomics podcast, we are joined by Caleen and Javier from The Workers’ Observatory. The platform and network were built to monitor the city of Edinburgh and observe how work is evolving in the capital, and to collectively challenge the conditions for self-employed and gig workers.  We unpack what the gig economy really means, the types of jobs it encompasses, and how technology and platforms have transformed the way work is done.  The conversation covers the limitations of traditional unions, the lived realities and precarious conditions faced by gig workers, and the broader implications for worker power and rights.  We also discuss the role of data, the impact of government policy, and potential alternatives, such as cooperatives and job guarantees. As this was recorded live, we also answered a few great questions from our audience, highlighting the urgent need for systemic change in the world of platform-based work. https://workersobservatory.org https://www.patreon.com/Scotonomics Hosted on Acast. See acast.com/privacy for more information.

Associate Professor Shireen Morris has long been concerned about the power of unelected central bankers. She has always questioned their supposed neutrality. In his brilliant paper on Central Banks (link below), she suggests that, “Theories of ‘monetary policy neutrality’ have facilitated inaction and atrophy of the Government’s power over monetary policy." Her research instinct came back online when the Australian Government in 2024 proposed removing Parliament’s veto over the Central Bank. Should we really have one of the most important institutions completely outside of democratic control? In this brilliant conversation, we take a step back to question the role of all central banks properly. Why do they all have a mandate on price stability? Can they control inflation? Why and how have they gained so much power and influence over our economy and society? We also consider where independence starts and ends. Finally, we take a step into the future. Using an independent Scotland as a test case, how would William and Shireen co-design a brand new Scottish Central Bank? Link to Shireen's paper: Against Increased Central Bank Independence in Australia: Better Balancing the Unelected Authority to Decide Big Distributional Trade-offs with Principles of Constitutional Democracy https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5083556 Hosted on Acast. See acast.com/privacy for more information.

In late 2022, a group of researchers published a working paper which would transform the understanding of how the UK government is financed. "The Self-Financing State" with Co-Author Andrew – A Deep Dive into the UK’s Public Finance Operations In this revealing interview, we’re joined by Andrew, co-author of The Self-Financing State—a paper that lays bare how UK public finance actually operates, based on institutional, legal, and operational evidence. In five key parts, we break down the research and explain why this is one of the most important economic papers published in the UK in decades. 1. Government Spending = Money CreationWe kick off by exploring the central insight of the paper: UK government spending creates new money. It is not funded by taxes or borrowing. Andrew explains how this is embedded in legislation, with the Consolidated Fund at the centre of operations. The Treasury spends first—taxes and bond sales happen later and serve different purposes. 2. Bonds Don't Fund SpendingThe paper shows that bonds are not issued to raise money, but to support monetary policy and the financial system. Andrew details the Full Funding Rule, the role of gilts and Treasury bills, and how the shift to interest-on-reserves post-QE makes debt issuance largely obsolete from a funding perspective. 3. The Bank of England Is Not IndependentAlthough the Bank of England is said to be independent, the paper shows that it is functionally subordinate to the Treasury in all spending operations. From QE indemnities to the Ways and Means facility, the central bank acts as a tool of the state. Independence is limited, mostly rhetorical, and undermines democratic accountability. 4. Misleading Framing of Deficits and DebtWe tackle the myth that government must "live within its means." Andrew explains how deficits are not under direct government control, but result from private sector saving and economic activity. Austerity, then, is not necessary—it’s a political choice sold as an economic imperative. 5. Public Debt = Private WealthFinally, we reframe government debt as a form of safe public saving. Bonds are demanded by pension funds and institutions because they are secure and state-backed. The idea that the national debt is something to “pay down” ignores its function as the backbone of private financial security. Why this matters This episode is essential listening for anyone who wants to understand how money actually works in the UK. If you care about the economy, public services, or Scottish independence, this is not just theory—it’s the real-world plumbing of the financial system. And it’s time more people knew about it. 🎧 Listen now A link to the fascinating paper: https://www.ucl.ac.uk/bartlett/sites/bartlett/files/the_self-financing_state_an_institutional_analysis_of_government_expenditure_revenue_collection_and_debt_issuance_operations_in_the_united_kingdom.pdf Hosted on Acast. See acast.com/privacy for more information.

What should a Just Transition mean for Scotland? And how far we are from likely achieving that goal. Miriam Brett discusses the big question with William Thomson (originally recorded at the Scotonomics Festival of Economics in Dundee). Today’s episode is essential listening for anyone interested in climate justice, energy democracy, and how we build a fairer, greener economy — not just in theory, but in practice. We're joined by Miriam Brett, Director of Research and Advocacy at Future Economy Scotland, to talk about one of the most urgent and misunderstood concepts in climate policy: the just transition. What is a just transition — really? It’s a term that’s often used by politicians and policy wonks, but rarely unpacked in a way that reveals its true economic, social, and historical roots. In this episode, Miriam does just that. We explore how the climate crisis is inextricably linked to inequality, how those who contribute least to environmental breakdown are often the most affected, and what bold, coordinated action is actually required to transform Scotland’s economy — and society — for the better. We’ll also dive into: The roots of the just transition in trade union activism, not environmental think tanks. Why Scotland’s current powers are both limited and underutilised. The urgent need for democratic ownership in energy and land use. How community wealth building could be a model for systemic change. And why this transition must be about more than green jobs — it must tackle inequality, empower local communities, and confront the failures of our market-based energy system. This is a wide-ranging, passionate conversation filled with insight, evidence, and a clear-eyed call for action. So if you're asking big questions like, "Who benefits from the green economy?" or "What power does Scotland really have to shape its future?" — this episode is for you. Let’s get into it. Hosted on Acast. See acast.com/privacy for more information.

Against the Crisis: Economy and Ecology in a Burning World by Ståle Holgersen. The book and our interview are a great deep dive into the ecological crisis as a crisis of capitalism. Now it's got a much wider scope than just the connection between a capitalist economy and our failing ecosystems. It covers the theoretical underpinning of crisis and the central role of capitalism in those crises. It is also a useful companion when trying to analyze many of the other significant crises we've faced in the last hundred years, including financial crises and pandemics. So it's absolutely packed. Check out the book here: https://www.versobooks.com/en-gb/products/3130-against-the-crisis?srsltid=AfmBOoreCJQugSaaqz5viZwiMQwb1VqT5sE5_xaiTfMFMJ1Cetgjarr9 Hosted on Acast. See acast.com/privacy for more information.

We discuss the Modern Monetary Theory lens with leading MMT economist Eric Tymoigne. You often hear the phrase "you can't do MMT". Eric explains that almost all governments already do MMT! However, not enough governments do MMT policies. Is it time for MMT to concentrate more on the prescriptive side? Do we have to show how the lens can help us create a fairer and more just society? Some of the background to this is covered here (free access) https://www.elgaronline.com/view/journals/ejeep/20/1/article-p11.xml We dig deep to find out what those 'modern' MMT policies are. Hosted on Acast. See acast.com/privacy for more information.

Professor Gerry McCartney and David Walsh joined us for this episode. Life expectancy is about more than just health – it’s about the kind of society we live in. And in the early 2010s, after decades of continual improvement, life expectancy in the UK, US and many other rich countries stopped increasing. For millions of people, it actually declined. Despite hundreds of thousands of extra deaths, governments and officials remained silent. This book combines robust evidence with real-life stories to demonstrate how austerity policies caused this scandal. It argues that this shocking and tragic suffering was predictable and caused by a dereliction of duty by those in power. The book concludes with an optimistic vision of what can be done to restore life expectancy improvements and reduce health inequalities. New Book Published by Bristol University Press. https://policy.bristoluniversitypress.co.uk/social-murder Hosted on Acast. See acast.com/privacy for more information.

Denial is a safe space. The challenge to our accepted views are painful. But as Tad Delay argues, when it comes to our climate, we must do all we can to ensure that people are aware of the real challenges to our planet and our survival. Hosted on Acast. See acast.com/privacy for more information.

He spoke about his economic influences. He shared his thoughts on Andrew Bailey, Gordon Brown and Danny Blanchflower (he had a lot of time for Danny). We covered resource economics, the climate crisis and MMT. We discussed his thoughts on the 2008 crash. Towards the end of the interview, we turned to his thoughts on the white paper, sterilisation, and the Scottish referendum. This is the first time we have shown the full interview from 2023. This is a rare opportunity to consider Alex's thoughts on the economy and how his views shaped the referendum. And Scotland since 2007. W hope you enjoy it as much as William did. Hosted on Acast. See acast.com/privacy for more information.

We discussed GB Energy and the problems that councils and the Scottish government have accessing money for Just Transition plans. We also talked about the concept of the Just Transition, which Fraser and William strongly believe must focus on reducing inequality in and between nations. Hosted on Acast. See acast.com/privacy for more information.

The Bristol £ ended in 2021. It reached some major highs and is recognised as one of the most influential and successful complementary currencies. After that, the team attempted to create a payment platform called Bristol Pay, which never quite got off the ground. Within that decade-long timeline, there are a lot of lessons to learn for any organisation which seeks to change the behaviour of individuals and companies. In this interview, Diana and William discuss the following: what a complementary currency is what made the Bristol Pound different the issues within the team currency as a leverage point to change the system the idea of agency to affect change dealing with that initial success keeping the momentum going life as a tech start up v community led platform money as an infrastructure support system fungibility and velocity of money advice for others looking to create some alternative currency or infrastructure support system By the book here: https://www.amazon.co.uk/Value-Beyond-Money-Exploration-Alternative/dp/1912092301 Hosted on Acast. See acast.com/privacy for more information.

Material World: A Substantial Story of Our Past and Future with Sky News Economics and Date Editor Ed Conway. William and Ed discuss his new book, Material World. The book is a deep (and it goes very deep) into the role that six materials have played in our economy and society. Ed aims to get us all thinking a lot more about the materials we use, where they come from, and their impact on our lives and our environment. It is a very entertaining read full of wonderful stories while challenging and questioning everything we use. I hope you enjoy the interview and get a copy of the paperback, which is out now! Hosted on Acast. See acast.com/privacy for more information.

The Austerity Paradigm. Read our paper here: https://scotonomics.scot/policy/explaining-austerity/ Austerity takes three forms. Fiscal retraction reduces government spending on welfare, especially unemployment benefits and pensions, and targets cutbacks in health, education, and social care. Industrial retraction reduces spending on infrastructure projects. Monetary austerity maintains high interest rates. Together, these shrink the expenditures on and consumption of the poorest section of society. All are supported by the economic conventional wisdom.  Hosted on Acast. See acast.com/privacy for more information.

A common understanding in the UK is that the austerity project started as a response to the 2008 bank bailouts. American Economist Clara Mattie (2022) traced the birth of austerity to the 1920s in the UK and then to Italy. Following the horror of the war, the British and Italian governments initially promised to build more new homes, introduce universal education, and support worker involvement and ownership of production. A few years later, austerity policies were introduced to reign in workers' power and enable capital to regain control of the economy. Austerity takes three forms. Fiscal retraction reduces government spending on welfare, especially unemployment benefits and pensions, and targets cutbacks in health, education, and social care. Industrial retraction reduces spending on infrastructure projects. Monetary austerity maintains high interest rates. Together, these shrink the expenditures on and consumption of the poorest section of society. Those three forms of austerity: fiscal, industrial, and monetary reinforce each other to reduce workers' consumption and power while re-establishing the wealth and power of the wealthiest in society. This is the austerity playbook, which is more than a century old. Hosted on Acast. See acast.com/privacy for more information.

This is a brilliant behind-the-scenes look at the Bank of England and the Treasury with David Blanchflower, a Professor of Economics at Dartmouth College. It's a real warts-and-all look at the BoE. Hosted on Acast. See acast.com/privacy for more information.

The Development Trust Association Scotland (DTAS) represents over 300 members across Scotland. We spoke to their CEO to learn more about those trusts and the impact they make across Scotland. Profit plays a part, but so do people, place, and planet. Find out more about some unsung heroes. https://dtascot.org.uk/ Hosted on Acast. See acast.com/privacy for more information.

The Working Class Climate Alliance is an environmental grassroots organisation for the working class, led by the working class. https://workingclassclimatealliance.com/ Hosted on Acast. See acast.com/privacy for more information.

n this LIVE explainer episode, William will explain the basics of MMT. He breaks down the strawman created by those with so much to protect from the current misunderstanding of how money is created in a modern economy. William covers: - the difference between a currency user (like a local council or the Scottish Government) and a currency issuer like the UK - the prescriptive element of MMT (what policies are recommended) - the descriptive element of MMT (what MMT tells us about our economy) - why do governments choose to account for spending with taxation and borrowing? - the essential and important role of taxes in our economy - why governments sell bonds (exchanging one form of risk-bearing money - cash - for another - bonds) - why the national debt could easily be called the 'national savings' - the damage of the shared belief in a fiscal framework for the UK (aka 'learned helplessness) - the resource constraints for government (and all private) spending - Why NO political party in the UK has yet to adopt an MMT lens - How MMT has identified the "magic money tree" I will also discuss and respond to Professor Mark Blyth's MMT points at our Scotonomics Economics festival in March. 🎧 Join us for a paid subscription to Patreon   / scotonomics   📖 Read our articles and policy papers on https://scotonomics.scot/ and 👀 Subscribe to our weekly newsletter 'Economics of the Real World' https://tinyurl.com/49n4pbaw Hosted on Acast. See acast.com/privacy for more information.

With Daniela Gabor, Professor of Economics & Micro-Finance, UWE. Professor Gabor cut to the chase. The state must have more control or involvement in creating money. It can spend that money into existence or direct commercial banks towards the right type of investment. Unless this happens, governments are forced to turn to shadow banks. Daniela wrote one of the most important pieces during the recent UK election campaign. Available here: https://www.theguardian.com/commentis... See some of Daniela's work: The (European) Derisking State: https://ideas.repec.org/p/osf/socarx/... And link to all of her papers here: https://people.uwe.ac.uk/Person/Danie... 🎧 Join us for a paid subscription to Patreon https://www.patreon.com/Scotonomics 📖 Read our articles and policy papers on https://scotonomics.scot/ and 👀 Subscribe to our weekly newsletter 'Economics of the Real World' https://tinyurl.com/49n4pbaw SHOW LESS Hosted on Acast. See acast.com/privacy for more information.