L. Randall Wray

Modern Money Theory (eBook, PDF)

A Primer on Macroeconomics for Sovereign Monetary Systems

• Format: PDF

Produktbeschreibung

This book, a revised new edition, examines how money is created and how it functions within global exchange rate regimes to highlight how monetary policy can promote economic growth, full employment, and price stability. It provides an introduction to the basics of macroeconomic accounting and the domestic monetary system, as well as fiscal operations, tax policy for sovereign nations, and alternative exchange rate regimes. New topics, including central bank clearing, responses to the COVID-19 pandemic, the rise of inflation, and how to finance a Green New Deal, are also discussed.

Since the second edition was published in 2015, Modern Money Theory (MMT) has been in the news with great frequency. First condemned as "crazy talk", it was embraced in the depths of the COVID-19 pandemic as a "new" way to finance the $5 trillion response by the administrations of both Donald Trump and Joe Biden.

MMT remains in the news as its proponents reject the mainstream's analysis of the causes of the post-pandemic inflation that has hit much of the world. It also offers an alternative approach to dealing with inflation, arguing that relying on high interest rates is misguided and causing unnecessary pain.

Modern Money Theory provides the reader with a framework for understanding real world economies. It will be relevant to students, researchers, and policymakers interested in monetary policy and modern money theory.

L. Randall Wray is Professor of Economics at the Levy Economics Institute of Bard College. He was invited to present on MMT before the Congressional Budget Office, and to give testimony before the House Budget Committee. The Chairman of that Committee, John Yarmuth later gave a remarkable interview in which he cogently summarized and endorsed the main conclusions of MMT.

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Produktdetails

• Verlag: Springer International Publishing
• Seitenzahl: 320
• Erscheinungstermin: 26. März 2024
• Englisch
• ISBN-13: 9783031478840
• Artikelnr.: 70255908

Autorenporträt

L. Randall Wray is Professor of Economics at the Levy Economics Institute of Bard College. He was invited to present on MMT before the Congressional Budget Office, and to give testimony before the House Budget Committee. The Chairman of that Committee, John Yarmuth later gave a remarkable interview in which he cogently summarized and endorsed the main conclusions of MMT.

Inhaltsangabe

Contents
List Of Illustrations
Preface
Box: Definitions
Introduction The Basics Of Modern Money Theory
1. The Basics Of Macroeconomic Accounting
1.1.The Basics Of Accounting For Stocks And Flows
1.2.MMT, Sectoral Balances, And Behavior
1.3. Stocks, Flows, And Balance Sheet: A Bathtub Analogy
1.4. Government Budget Deficits Are Largely Nondiscretionary: The Case Of
The Great Recession Of 2007
1.5. Accounting For Real Versus Financial
1.6. Recent US Sectoral Balances: Goldilocks And The Global Crash
2. Spending By Issuer Of Domestic Currency
2.1. What Is A Sovereign Currency?
2.2. What Backs Up Currency And Why Would Anyone Accept It?
2.3. Taxes Drive Money
2.4. What If The Population Refuses To Accept The Domestic Currency?
2.5. Record Keeping In The The Money Of Account
2.6. Sovereign Currency And Monetizing Real Assets
2.7. Sustainability Conditions
3. The Domestic Monetary System: Banking And Central Banking
3.1. Ious Denominated In The National Currency
3.2. Clearing And The Pyramid Of Liabilities
3.3. Central Bank Operations In Crisis: Lender Of Last Resort
3.4. Balance Sheets Of Banks, Monetary Creation By Banks, And Interbank
Settle-Ment
3.5. Exogenous Interest Rates And Quantitative Easing
3.6. The Technical Details Of Central Bank And Treasury Coordination: The
Case Of The Fed
3.7. Treasury Debt Operations
3.8. Conclusions On Fed And Treasury Roles
4. Fiscal Operations In A Nation That Issues Its Own Currency
4.1. Introductory Principles
4.2. Effects Of Sovereign Government Budget Deficits On Saving, Reserves,
And In-Terest Rates
4.3. Government Budget Deficits And The 'Two-Step' Process Of Saving
4.4. What If Foreigners Hold Government Bonds?
4.5. Currency Solvency And The Special Case Of The US Dollar
4.6. Sovereign Currency And Government Policy In The Open Economy
4.7. What About A Country That Adopts A Foreign Currency?
5. Tax Policy For Sovereign Nations
5.1. Why Do We Need Taxes? The MMT Perspective
5.2. What Are Taxes For? The MMT Approach
5.3. Taxes For Redistribution
5.4. Taxes And The Public Purpose
5.5. Tax Bads, Not Goods
5.6. Bad Taxes
6. Modern Money Theory And Alternative Exchange Rate Regimes
6.1.The Gold Standard And Fixed Exchange Rates
6.2. Floating Exchange Rates
6.3. Commodity Money Coins? Metalism Versus Nominalism, From Mesopotamia To
Rome
6.4. Commodity Money Coins? Metalism Versus Nominalism, After Rome
6.5. Exchange Rate Regimes And Sovereign Defaults
6.6. The Euro: The Set-Up Of A Nonsovereign Currency
6.7. The Crisis Of The Euro
6.8. Endgame For The Euro?
6.9. Currency Regimes And Policy Space: Conclusion
7. Monetary And Fiscal Policy For Sovereign Currencies: What Should
Government Do?
7.1. Just Because Government Can Afford To Spend Does Not Mean Government
Ought To Spend
7.2. The 'Free' Market And The Public Purpose
7.3. Functional Finance
7.4. Functional Finance Versus The Government Budget Constraint
7.5. The Debate About Debt Limits (US Case)
7.6. A Budget Stance For Economic Stability And Growth
7.7. Functional Finance And Exchange Rate Regimes
7.8. Functional Finance And Developing Nations
7.9. Exports Are A Cost, Imports Are A Benefit: A Functional Finance
Approach
8. Policy For Full Employment And Price Stability
8.1. Functional Finance And Full Employment
8.2. The JG/ELR For A Developing Nation
8.3. Program Manageability
8.4. The JG/ELR And Real World Experience
8.5. The JG And Inequality
8.6. Conclusions On Full Employment Policy
8.7. MMT For Austrians: Can A Libertarian Support The JG?
9. Inflation And Sovereign Currencies
9.1. Inflation And The Consumer Price Index
9.2. Alternative Explanations Of Hyperinflation
9.3. Real-World Hyperinflations
9.4. Conclusions On Hyperinflation
9.5. Conclusion: MMT And Policy
10. Conclusions: Modern Money Theory For Sovereign Currencies
10.1. MMT Got It Right: The Global Financial Crisis
10.2. MMT Got It Right: The Euro Crisis
10.3. Creastionism Versus Redemptionism: How A Money-Issuer Really Lends
And Spends
10.4. Growing Recognition Of The Need For A Job Guarantee
10.5. MMT And External Constraints: To Fix Or To Float, That Is The
Question
10.6. A Meme For Money
Notes
Bibliography
Index

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1. The Basics of Modern Money Theory.- 2. The Basics of Macroeconomic Accounting.- 3. Spending by Issuer of Domestic Currency.- 4. The Domestic Monetary System: Banking and Central Banking.- 5. Fiscal Operations in a Nation That Issues Its Own Currency.- 6. Tax Policy for Sovereign Nations.- 7. Modern Money Theory and Alternative Exchange Rate Regimes.- 8. Monetary and Fiscal Policy for Sovereign Currencies: What Should Government Do?.- 9. Policy for Full Employment and Price Stability.- 10. Inflation and sovereign currencies.- 11. Conclusions: Modern money theory for sovereign currencies.

Rezensionen

'This book paves the way for another revolution in macroeconomics. Wray shows us how an economy with modern money works and, more importantly, how it can be used to lift us to a more prosperous tomorrow.' Stephanie Kelton, University of Missouri-Kansas City

'Wray debunks so many of the destructive beliefs that have contributed to our current economic and social malaise. This is a primer that should not only become mandatory reading for students of economics, but any policy maker who truly wants to deal with the grave disasters engendered from years of 'reading from the wrong playbook'.' Marshall Auerback, Director of the Economists for Peace and Security (epsusa.org) and a research associate at the Levy Institute