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.”

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The MMT lens for an independent Scotland and Wales