MMT Primer

 

The posts from the MMT Primer series have been collected and organized into Randy’s latest book, Modern Money Theory. It makes for a much more coherent read and is highly recommended for anyone seriously interested in the MMT perspective. (Available from Amazon.com)

 

Each Monday we will post a relatively short piece, gradually building toward a comprehensive theory of the way that money “works” in sovereign countries. We will then collect comments through Wednesday night, and will post a response to the comments on Thursday. The comments should be directly related to that week’s blog. Since we are trying to develop an understanding of Modern Monetary Theory (MMT), we especially encourage commentators to let us know where we have been unclear. Since we will be presenting the Primer over the course of the coming year, we will sometimes have to beg for patience—obviously we cannot present the entire theory all at once.

These blogs begin with the basics; no previous knowledge of MMT—or even of economics—is required. The blogs are sequential; each subsequent blog builds on previous blogs. The blogs will be at the level of theory, with only limited reference to specific cases, histories, and policies. That is intentional. A Primer should provide a general overview that can be adapted to specific national situations. The regular pages of NEP will continue to discuss current real world policy issues. The Primer will remain on a different plane.

  1. MODERN MONETARY THEORY: A PRIMER ON MACROECONOMICS FOR SOVEREIGN MONETARY SYSTEMS
  2. THE BASICS OF MACRO ACCOUNTING
  3. RECENT USA SECTORAL BALANCES: GOLDILOCKS, THE GLOBAL CRASH, AND THE PERFECT FISCAL STORM
  4. MMT, SECTORAL BALANCES AND BEHAVIOR
  5. GOVERNMENT BUDGET DEFICITS ARE LARGELY NONDISCRETIONARY: THE CASE OF THE GREAT RECESSION OF 2007
  6. WHAT IS A SOVEREIGN CURRENCY?
  7. WHAT BACKS UP CURRENCY, AND WHY WOULD ANYONE ACCEPT IT?
  8. TAXES DRIVE MONEY
  9. WHAT IF THE POPULATION REFUSES TO ACCEPT THE DOMESTIC CURRENCY?
  10. KEEPING TRACK OF STOCKS AND FLOWS: THE MONEY OF ACCOUNT
  11. MODERN MONETARY THEORY AND ALTERNATIVE EXCHANGE RATE REGIMES
  12. COMMODITY MONEY COINS? METALISM VS. NOMINALISM, PART ONE
  13. COMMODITY MONEY COINS? METALISM VS. NOMINALISM, PART TWO
  14. IOUs Denominated in the National Currency: Government and Private
  15. Clearing and the Pyramid of Liabilities
  16. The Unusual Case of Euroland
  17. Accounting for Real vs Financial (Nominal)
  18. Fiscal and Monetary Policy Operations in a Sovereign Nation
  19. The Effects of Sovereign Budget Deficits on Saving, Reserves and Interest Rates
  20. The Effects of Sovereign Budget Deficits on Saving, Reserves and Interest Rates, (continued)
  21. Government Budget Deficits and the “Two-Step” Process of Saving
  22. Reserves, Government Bond Sales, and Savings
  23. The Debate About Debt Limits (US Case)
  24. What if Foreigners Hold Government Bonds?
  25. Currency Solvency and the Special Case of the US
  26. Sovereign Currency and Government Policy in the Open Economy
  27. What About a Country that Adopts a Foreign Currency? Part One
  28. Government Spending with Self-Imposed Constraints
  29. What About a Country that Adopts a Foreign Currency? Part Two

MMT: A Doubly Retrospective Analysis

  1. What is Modern Monetary Theory?
  2. Functional Finance: Monetary and Fiscal Policy for Sovereign Currencies
  3. Milton’s Friedman’s Version of Functional Finance: A Proposal for Integration of Fiscal and Monetary Policy
  4. Functional Finance and Long Term Growth
  5. Functional Finance and Exchange Rate Regimes: The Twin Deficits Debate
  6. Functional Finance: A Conclusion
  7. What Government Ought to Do: An Introduction
  8. The Public Purpose
  9. MMT for Austrians
  10. MMT for Austrians II: Disagreements Among Reasonable People
  11. MMT for Austrians III: How Do YOU Propose We Deal With the Elderly, Disabled, and their Depts?
  12. MMT for Austrians IV: Is Description Without Theory, Ideology or Policy Desirable? Is it Even Possible?
  13. Introduction to the Job Guarantee or Employer of Last Resort
  14. Job Guarantee Basics: Design and Advantages
  15. Job Guarantee and Macro Stability
  16. The JG and Affordability Issues with Special Considerations for Developing Nations
  17. The Job Guarantee: Program Manageability
  18. The JG / ELR and Real World Experience
  19. Is the Job Guarantee Necessary?
  20. Should Growth Drive Jobs, or Jobs Drive Growth?
  21. MMT Without the JG? Conclusion
  22. The Efficiency Fairy and Inflation Goblins
  23. Conclusion: The Nature of Money