David Woodruff
@dmwoodruff.bsky.social
Associate Professor of Comparative Politics, LSE. CPE, central banks, monetary history, intellectual history of social science, Karl Polanyi, Soviet economic history, complaining about neoliberalism, etc. He/him.
Reposted by David Woodruff
In sum: if folks want to beat up on MM theorists for not being systematic on resource constraints, fine. But have some humility: our MMT-that-dare-not-speak-its-name has comprehensively eviscerated our ability to even DISCUSS what a sensible relationship between fiscal and monetary policy would be.
December 4, 2025 at 11:00 AM
In sum: if folks want to beat up on MM theorists for not being systematic on resource constraints, fine. But have some humility: our MMT-that-dare-not-speak-its-name has comprehensively eviscerated our ability to even DISCUSS what a sensible relationship between fiscal and monetary policy would be.
Reposted by David Woodruff
In the 3 fiscal years from April 2022-March 2025, ~£147 bln (72% of w redemptions, 32% indemnities) = 6.5% of central government tax revenue, was sent by the Treasury to the BoE so the BoE could destroy (delete) it. Right amount of tax-financed money supply reduction? Not a debate we're having! 2/n
December 4, 2025 at 11:00 AM
In the 3 fiscal years from April 2022-March 2025, ~£147 bln (72% of w redemptions, 32% indemnities) = 6.5% of central government tax revenue, was sent by the Treasury to the BoE so the BoE could destroy (delete) it. Right amount of tax-financed money supply reduction? Not a debate we're having! 2/n
Reposted by David Woodruff
I tend to agree with you. I wrote this post partly because I didn't see any engagement with MMT on this issue: mainlymacro.blogspot.com/2024/04/coul... Would be interested in your thoughts.
Could governments finance deficits by creating money?
MMTers often say that financing government spending less taxes by issuing government debt is a policy choice, because they could instead ...
mainlymacro.blogspot.com
December 4, 2025 at 4:16 PM
I tend to agree with you. I wrote this post partly because I didn't see any engagement with MMT on this issue: mainlymacro.blogspot.com/2024/04/coul... Would be interested in your thoughts.
Reposted by David Woodruff
IMHO, Murphy's very sloppy. But UK fiscal policy since QE/QT amounts to MMT that dare not speak its name. Viz:Osborne et al spent ~£120 bln of the money created to purchase gilts in QE. Too much monetisation-financed fiscal spending, or too little? MMT could at least pose the question! As for QT 1/n
This stuff really is snake oil. Would be a great shame if @zackpolanski.bsky.social fell for it. Politically it’s a one way ticket to nowhere. Important under current circumstances to have an articulate and credible voice on the left. Zack needs to steer clear.
www.taxresearch.org.uk/Blog/2025/11...
www.taxresearch.org.uk/Blog/2025/11...
MMT matters because it reveals power – and gives us back the right to choose
I think modern monetary theory (MMT) matters. That is not because it is perfect, because no theory is. Instead, it is because it explains something that almost no one in mainstream economics has ever ...
www.taxresearch.org.uk
December 4, 2025 at 11:00 AM
IMHO, Murphy's very sloppy. But UK fiscal policy since QE/QT amounts to MMT that dare not speak its name. Viz:Osborne et al spent ~£120 bln of the money created to purchase gilts in QE. Too much monetisation-financed fiscal spending, or too little? MMT could at least pose the question! As for QT 1/n
IMHO, Murphy's very sloppy. But UK fiscal policy since QE/QT amounts to MMT that dare not speak its name. Viz:Osborne et al spent ~£120 bln of the money created to purchase gilts in QE. Too much monetisation-financed fiscal spending, or too little? MMT could at least pose the question! As for QT 1/n
This stuff really is snake oil. Would be a great shame if @zackpolanski.bsky.social fell for it. Politically it’s a one way ticket to nowhere. Important under current circumstances to have an articulate and credible voice on the left. Zack needs to steer clear.
www.taxresearch.org.uk/Blog/2025/11...
www.taxresearch.org.uk/Blog/2025/11...
MMT matters because it reveals power – and gives us back the right to choose
I think modern monetary theory (MMT) matters. That is not because it is perfect, because no theory is. Instead, it is because it explains something that almost no one in mainstream economics has ever ...
www.taxresearch.org.uk
December 4, 2025 at 11:00 AM
IMHO, Murphy's very sloppy. But UK fiscal policy since QE/QT amounts to MMT that dare not speak its name. Viz:Osborne et al spent ~£120 bln of the money created to purchase gilts in QE. Too much monetisation-financed fiscal spending, or too little? MMT could at least pose the question! As for QT 1/n
This aphorism is by me, not Karl Polanyi, but I think it's a fair rendering of the lessons one might draw from his account of the interwar period.
The task is not to make anti-fascism consistent with the financial system, but to make the financial system consistent with anti-fascism.
Bloomberg taking a shot across the bow of @zackpolanski.bsky.social — but should we listen to an economist (and Times columnist btw) whose main concern regarding Reform is its fiscal policy? www.bloomberg.com/news/article...
December 3, 2025 at 12:23 PM
This aphorism is by me, not Karl Polanyi, but I think it's a fair rendering of the lessons one might draw from his account of the interwar period.
BoE line about interest on reserves is that reducing is a fiscal decision for the government to make. But payments were never legislated—it was a BoE decision, which apparently sought an ok from the Treasury, in 2006 when this was an issue of millions rather than billions. But look now:
Over the last 11 financial years, the UK Treasury has spent more on paying interest to the banking sector on their reserves than it has taken in from them in corporate and sector-specific taxes. In 2024-25, it paid over 3 times as much for interest on reserves as it received from taxes on banks.
December 3, 2025 at 11:12 AM
BoE line about interest on reserves is that reducing is a fiscal decision for the government to make. But payments were never legislated—it was a BoE decision, which apparently sought an ok from the Treasury, in 2006 when this was an issue of millions rather than billions. But look now:
If you took this clip as the whole story you got played. @zackpolanski.bsky.social also mentioned James Meadway @meadwaj.bsky.social which changes the picture, but the clip truncated his answer.
Pinched this video from @cjsnowdon.bsky.social on Twitter because Bluesky has to see it.
Nothing can prepare you for the punchline here.
Nothing can prepare you for the punchline here.
December 3, 2025 at 9:43 AM
If you took this clip as the whole story you got played. @zackpolanski.bsky.social also mentioned James Meadway @meadwaj.bsky.social which changes the picture, but the clip truncated his answer.
The correct single- sentence essence of economics is ‘your leverage is my business’. Or possibly: ‘Don’t model economics on physics’. www.ft.com/content/e196...
The essence of economics
Why write about markets at all?
www.ft.com
December 1, 2025 at 5:26 PM
The correct single- sentence essence of economics is ‘your leverage is my business’. Or possibly: ‘Don’t model economics on physics’. www.ft.com/content/e196...
Reposted by David Woodruff
“The chancellor’s failure to levy a windfall tax on the banking sector in the budget is a damning indictment of the stronghold the sector continues to have over our politics.”
Our comments in this great piece about how banks swerved tax rises last week.
www.theguardian.com/uk-news/2025...
Our comments in this great piece about how banks swerved tax rises last week.
www.theguardian.com/uk-news/2025...
‘The City can’t be taken for granted’: how banks won over Rachel Reeves
JP Morgan and Goldman Sachs to expand UK presence after sector was spared from higher taxes in budget
www.theguardian.com
December 1, 2025 at 10:41 AM
“The chancellor’s failure to levy a windfall tax on the banking sector in the budget is a damning indictment of the stronghold the sector continues to have over our politics.”
Our comments in this great piece about how banks swerved tax rises last week.
www.theguardian.com/uk-news/2025...
Our comments in this great piece about how banks swerved tax rises last week.
www.theguardian.com/uk-news/2025...
Piehouse Workers Co-op - Emergency Fundraiser! www.crowdfunder.co.uk/p/piehouse-w...
Piehouse Workers Co-op - Emergency Fundraiser!
Help our DIY grassroots music and arts venue recover from a flood that destroyed equipment, and cost us thousands due to having to close.
www.crowdfunder.co.uk
November 30, 2025 at 5:03 PM
Piehouse Workers Co-op - Emergency Fundraiser! www.crowdfunder.co.uk/p/piehouse-w...
Reposted by David Woodruff
The task is not to make anti-fascism consistent with the financial system, but to make the financial system consistent with anti-fascism.
Bloomberg taking a shot across the bow of @zackpolanski.bsky.social — but should we listen to an economist (and Times columnist btw) whose main concern regarding Reform is its fiscal policy? www.bloomberg.com/news/article...
November 25, 2025 at 7:43 AM
The task is not to make anti-fascism consistent with the financial system, but to make the financial system consistent with anti-fascism.
Effectiveness of this change will be limited by the fact that under present QT policy, the BOE and APF will keep selling unreasonably long-maturity debt. However, a simple reform--allowing the DMO to bid on auctions of APF gilts--would bring all gilt issue policy under Treasury control.
November 28, 2025 at 11:39 AM
Effectiveness of this change will be limited by the fact that under present QT policy, the BOE and APF will keep selling unreasonably long-maturity debt. However, a simple reform--allowing the DMO to bid on auctions of APF gilts--would bring all gilt issue policy under Treasury control.
Reposted by David Woodruff
Even after the mansion tax is applied, the owner of a £5m home in Westminster will pay proportionately less in property tax than the owner of a £210k Band B property in Sunderland.
November 27, 2025 at 3:30 PM
Even after the mansion tax is applied, the owner of a £5m home in Westminster will pay proportionately less in property tax than the owner of a £210k Band B property in Sunderland.
OBR assumptions on QT look significantly more realistic than in the past. They've chosen to assume a constant level of active sales from here forward, which is certainly better than what they were doing before. Not that this is the way the process should be organised, but that's a different issue.
November 27, 2025 at 12:31 PM
OBR assumptions on QT look significantly more realistic than in the past. They've chosen to assume a constant level of active sales from here forward, which is certainly better than what they were doing before. Not that this is the way the process should be organised, but that's a different issue.
Reposted by David Woodruff
"[I]f history were to repeat itself and we were to return to the so-called "normalcy" of the 1920's—then it is certain that even though we shall have conquered our enemies on the battlefields abroad, we shall have yielded to the spirit of Fascism here at home."
Franklin D. Roosevelt, 1944
Franklin D. Roosevelt, 1944
November 25, 2025 at 10:59 AM
"[I]f history were to repeat itself and we were to return to the so-called "normalcy" of the 1920's—then it is certain that even though we shall have conquered our enemies on the battlefields abroad, we shall have yielded to the spirit of Fascism here at home."
Franklin D. Roosevelt, 1944
Franklin D. Roosevelt, 1944
Reposted by David Woodruff
I wish I didn’t have to share this. But the BBC has decided to censor my first Reith Lecture.
They deleted the line in which I describe Donald Trump as “the most openly corrupt president in American history.” /1
They deleted the line in which I describe Donald Trump as “the most openly corrupt president in American history.” /1
November 25, 2025 at 9:26 AM
I wish I didn’t have to share this. But the BBC has decided to censor my first Reith Lecture.
They deleted the line in which I describe Donald Trump as “the most openly corrupt president in American history.” /1
They deleted the line in which I describe Donald Trump as “the most openly corrupt president in American history.” /1
If Karl Polanyi were around today he would sound not like Blue Labour but like this.
The task is not to make anti-fascism consistent with the financial system, but to make the financial system consistent with anti-fascism.
Bloomberg taking a shot across the bow of @zackpolanski.bsky.social — but should we listen to an economist (and Times columnist btw) whose main concern regarding Reform is its fiscal policy? www.bloomberg.com/news/article...
November 25, 2025 at 9:35 AM
If Karl Polanyi were around today he would sound not like Blue Labour but like this.
The task is not to make anti-fascism consistent with the financial system, but to make the financial system consistent with anti-fascism.
Bloomberg taking a shot across the bow of @zackpolanski.bsky.social — but should we listen to an economist (and Times columnist btw) whose main concern regarding Reform is its fiscal policy? www.bloomberg.com/news/article...
November 25, 2025 at 7:43 AM
The task is not to make anti-fascism consistent with the financial system, but to make the financial system consistent with anti-fascism.
Bloomberg taking a shot across the bow of @zackpolanski.bsky.social — but should we listen to an economist (and Times columnist btw) whose main concern regarding Reform is its fiscal policy? www.bloomberg.com/news/article...
November 25, 2025 at 6:10 AM
Bloomberg taking a shot across the bow of @zackpolanski.bsky.social — but should we listen to an economist (and Times columnist btw) whose main concern regarding Reform is its fiscal policy? www.bloomberg.com/news/article...
Despite planning to continue paying the banks 3 x more in interest on reserves than they pay in corporate and related taxes, Reeves is reduced to begging the banks for PR help to sell her budget. on.ft.com/4iDbqqB
November 24, 2025 at 10:39 PM
Despite planning to continue paying the banks 3 x more in interest on reserves than they pay in corporate and related taxes, Reeves is reduced to begging the banks for PR help to sell her budget. on.ft.com/4iDbqqB
My department has just announced a tenure track position for a scholar in any field of political science except for political theory (and IR, which is in a different department at LSE). For details, please see here: jobs.lse.ac.uk/Vacancies/W/...
Assistant Professor in Political Science
Assistant Professor in Political Science,
,
<p style="text-align: center;"><em><span>LSE is committed to building a diverse, equitable and truly inclusive university</span></em></p>
<p style="text-ali...
jobs.lse.ac.uk
November 24, 2025 at 9:09 PM
My department has just announced a tenure track position for a scholar in any field of political science except for political theory (and IR, which is in a different department at LSE). For details, please see here: jobs.lse.ac.uk/Vacancies/W/...
In case you were wondering, the bond market consists of 11 white men and 1 Asian woman.
www.ft.com/content/e01f...
www.ft.com/content/e01f...
What big bond investors want from the UK Budget
Gilt market players call on government to cut spending and steer clear of inflationary tax rises
www.ft.com
November 24, 2025 at 12:19 PM
In case you were wondering, the bond market consists of 11 white men and 1 Asian woman.
www.ft.com/content/e01f...
www.ft.com/content/e01f...
It's staggering to me that apparently there's no significant constituency within Labour to address bank taxation; on the left, only @zackpolanski.bsky.social has been making noise about this.
Over the last 11 financial years, the UK Treasury has spent more on paying interest to the banking sector on their reserves than it has taken in from them in corporate and sector-specific taxes. In 2024-25, it paid over 3 times as much for interest on reserves as it received from taxes on banks.
November 23, 2025 at 10:12 AM
It's staggering to me that apparently there's no significant constituency within Labour to address bank taxation; on the left, only @zackpolanski.bsky.social has been making noise about this.
An LLM trained on chapter 12 of Keynes’ General Theory could write most of the markets commentary you’ll ever encounter. {\very mild hyperbole}. For instance: on.ft.com/44pGR1k
The General Theory of Employment, Interest and Money by John Maynard Keynes
www.marxists.org
November 22, 2025 at 6:45 AM
An LLM trained on chapter 12 of Keynes’ General Theory could write most of the markets commentary you’ll ever encounter. {\very mild hyperbole}. For instance: on.ft.com/44pGR1k