MMTer L. Randall Wray on Monetary Reform (cont'd)

• In monetized economies, "... we need specialized institutions that can issue widely accepted monetary IOUs (money tokens) to enable that activity to get underway."

        Americans ... are skeptical of putting all monetized economic activity
        in the hands of a much bigger government.  I cannot see any possibility
        of running a modern, monetized, capitalist economy without private
        financial institutions that create the monetary IOUs needed to initiate
        much of the economic activity that we prefer to leave to private
        initiative.

• Role for public banks, national development banks, direct government loans to small business

  • But also a role for nominally private financial institutions

  • Need for downsizing behemoth banks, prosecution of financial fraud, etc.

• L. Randall Wray, "Modern Money Theory: A Primer on Macroeconomics for Sovereign Monetary Systems" (2nd ed., Palgrave Macmillan, 2015), pp. 7-8