Is the Natural Rate of Interest Really Zero? (Answering MMT)

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09/12/2026 Robert P. Murphy

Using Randall Wray’s classroom “buckaroo” currency, Bob shows how MMT thinks about money, and the claim that a fiat currency’s natural rate of interest is zero. He explains why the Austrian view roots interest in subjective time preference rather than the cost of printing money, and why an MMT-style currency would push price inflation higher over time.

Related:

Warren Mosler, “The Natural Rate of Interest Is Zero”: Mises.org/HAP563a
Randall Wray “How to Implement True, Full Employment”: Mises.org/HAP563b
MMT vs. Austrian School Debate: Mises.org/HAP563c

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