Recommended video: Are we at a Galileo moment in economics?

Richard Murphy

What if everything you think about money is wrong? And does it matter for the economy if it is? Most people believe governments must tax or borrow before they can spend. That belief shapes every political debate, every austerity programme, and every argument that public services “can’t be afforded.” But what if that belief is simply false? In this video, I explain why modern monetary theory (MMT) is forcing a reckoning with economic orthodoxy, and why understanding how money works and how money creation actually functions is essential if we are ever to escape the trap of unnecessary austerity and constrained public investment. The parallel with Galileo is not accidental. Just as helio-centric astronomy was resisted by those with institutional power to lose, the truth about government spending and fiscal policy is resisted today by politicians, commen tators, and economists who cannot afford to admit they were wrong. The cost of that resistance is paid by the rest of us: in under-funded public services, stagnant wages, and an economy that fails the majority. This is economics’ Galileo moment. The choice is between a comfortable illusion and the truth.

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https://www.linkedin.com/ on 10 Apr 2026

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Richard Murphy is Emeritus Professor of Accounting Practice at Sheffield University Management School. He is director of Tax Research LLP and the author of the Funding the Future blog.