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The Elgar Companion to Modern Money Theory
This Companion is a comprehensive introduction to Modern Money Theory (MMT), covering a wide variety of topics from the nature and origins of money, to the fundamentals of government spending and taxation, to the application of MMT in developed and developing countries.
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Critical Acclaim
Contents
More Information
This Companion is a comprehensive introduction to Modern Money Theory (MMT), covering a wide variety of topics from the nature and origins of money, to the fundamentals of government spending and taxation, to the application of MMT in developed and developing countries.
Bringing together prominent MMT economists, The Elgar Companion to Modern Money Theory analyzes the crucial contemporary issues of financing the green transition, aging and social security, and job guarantee programs. Authors discuss government debt in the modern money system, the dynamics of fiscal deficits and debt, resource constraints, and macroeconomic policy. This forward-thinking Companion constructively responds to MMT critiques, advocating for the use of MMT principles to devise more effective and sustainable development policies for the future.
This book is a crucial resource for students, academics, and researchers specializing in economics, political economics, political science, and the social sciences more broadly. Discussing practical examples alongside theory and related critique, The Elgar Companion to Modern Money Theory is also invaluable for economic policymakers and practitioners.
Bringing together prominent MMT economists, The Elgar Companion to Modern Money Theory analyzes the crucial contemporary issues of financing the green transition, aging and social security, and job guarantee programs. Authors discuss government debt in the modern money system, the dynamics of fiscal deficits and debt, resource constraints, and macroeconomic policy. This forward-thinking Companion constructively responds to MMT critiques, advocating for the use of MMT principles to devise more effective and sustainable development policies for the future.
This book is a crucial resource for students, academics, and researchers specializing in economics, political economics, political science, and the social sciences more broadly. Discussing practical examples alongside theory and related critique, The Elgar Companion to Modern Money Theory is also invaluable for economic policymakers and practitioners.
Critical Acclaim
‘Mainstream economics treats capitalism as a barter system, and portrays the state and private sectors as always antagonistic. MMT shows that capitalism is inherently monetary, and that the state''s creation of fiat money is essential to the proper functioning of the private sector. The book''s chapters cover everything from the evolution of money from religious practices – not barter – to the proper management of the modern monetary system, which is something that mainstream economists have never understood.’
– Steve Keen, University College London, UK
‘This book is a feast, remarkable for range and clarity. Its expositions of Modern Monetary Theory situate MMT firmly in monetary history, in economic theory, and in current policy disputes. A powerful refutation of mainstream dogmas, this Elgar Companion is the indispensable and definitive reference for the field.’
– James K. Galbraith, The University of Texas at Austin, US
– Steve Keen, University College London, UK
‘This book is a feast, remarkable for range and clarity. Its expositions of Modern Monetary Theory situate MMT firmly in monetary history, in economic theory, and in current policy disputes. A powerful refutation of mainstream dogmas, this Elgar Companion is the indispensable and definitive reference for the field.’
– James K. Galbraith, The University of Texas at Austin, US
Contents
Contents
Introduction to Modern Money Theory 1
Yeva Nersisyan and L. Randall Wray
SECTION I THE NATURE AND ORIGINS OF MONEY
1 On the nature and origins of money 14
Alla Semenova
2 Civic and temple origins of Greek coinage 22
Michael Hudson
3 Modern Money Theory: sociology and economics 35
Geoffrey Ingham
4 Redemption 47
Eric Tymoigne
5 The paper money of colonial America 58
Farley Grubb
6 Monetary dissent and the erasure of state power in American history 70
David M. P. Freund
7 Modern Money Theory and international law working together 89
John D. Haskell
SECTION II MODERN MONEY THEORY FUNDAMENTALS
8 Modern Money Theory and economic theory 99
Eric Tymoigne
9 Consolidation technique 115
Eric Tymoigne
10 Sector financial balances and Modern Monetary Theory 131
Robert W. Parenteau
11 Financial balances 149
Gennaro Zezza
12 Government debt in the modern money system 162
Joelle Leclaire
13 Unpacking the dynamics of fiscal deficits and debt 172
Martin Watts
14 Buffer stock approaches to inflation control 184
William Mitchell
15 The Job Guarantee: Modern Money Theory’s proposal for full
employment and price stability 194
Pavlina R. Tcherneva
16 Why Hyman Minsky matters for Modern Money Theory 211
L. Randall Wray
SECTION III RESOURCE CONSTRAINTS
17 Resource constraints 225
Sam Levey
18 Resource constraints and economic policy 236
Yeva Nersisyan
19 Why Social Security can’t go “broke” 248
Kerry Pechter
20 The Modern Money Theory approach to provisioning for an aging population 262
Yeva Nersisyan and L. Randall Wray
SECTION IV MODERN MONEY THEORY AND THE EXTERNAL SECTOR
21 The Modern Monetary Theory perspective on the external economy 273
William Mitchell
22 Modern Money Theory and exchange rates 291
John Harvey
23 Money, foreign exchange and the balance of payments 301
Michael Hudson
SECTION V MODERN MONEY THEORY AND ECONOMIC DEVELOPMENT
24 Modern Monetary Theory as an analytical framework and a policy lens:
an African perspective 312
Ndongo Samba Sylla
25 Harnessing sovereign money for development finance and solving the
debt conundrum: the case of China 327
Yan Liang
26 Job Guarantee as sustainable development policy: balancing China’s
economic development and ecological civilization 340
Yijiang Huang
SECTION VI MODERN MONEY THEORY AND ECONOMIC POLICY
27 The politics of apolitical money: Paul Volcker and monetary policy in action 350
David Stein
28 Fiscal policy in the Eurozone 362
Dirk Ehnts
29 Sovereign currency and non-sovereign budgets: the Modern Money
Theory approach to provincial, state, and local government budgets 376
L. Randall Wray
30 Is Overt Monetary Financing a viable option in the post-pandemic era? 384
Martin Watts
31 Electricity provisioning under the Green New Deal: a Modern
Monetary Theory approach 397
Avraham I. Baranes and Mitchell R. Green
32 The regional Job Guarantee: fostering economic democracy and
promoting public participation 409
Michael J. Murray
SECTION VII RESPONDING TO CRITICS
33 Modern Money Theory and the monetary system: a reply to critics 418
Eric Tymoigne
34 Modern Money Theory policymaking praxis: a response to critics 430
Eric Tymoigne
35 Modern Money Theory policymaking praxis and financial and
economic stability: a response to critics 443
Eric Tymoigne
Introduction to Modern Money Theory 1
Yeva Nersisyan and L. Randall Wray
SECTION I THE NATURE AND ORIGINS OF MONEY
1 On the nature and origins of money 14
Alla Semenova
2 Civic and temple origins of Greek coinage 22
Michael Hudson
3 Modern Money Theory: sociology and economics 35
Geoffrey Ingham
4 Redemption 47
Eric Tymoigne
5 The paper money of colonial America 58
Farley Grubb
6 Monetary dissent and the erasure of state power in American history 70
David M. P. Freund
7 Modern Money Theory and international law working together 89
John D. Haskell
SECTION II MODERN MONEY THEORY FUNDAMENTALS
8 Modern Money Theory and economic theory 99
Eric Tymoigne
9 Consolidation technique 115
Eric Tymoigne
10 Sector financial balances and Modern Monetary Theory 131
Robert W. Parenteau
11 Financial balances 149
Gennaro Zezza
12 Government debt in the modern money system 162
Joelle Leclaire
13 Unpacking the dynamics of fiscal deficits and debt 172
Martin Watts
14 Buffer stock approaches to inflation control 184
William Mitchell
15 The Job Guarantee: Modern Money Theory’s proposal for full
employment and price stability 194
Pavlina R. Tcherneva
16 Why Hyman Minsky matters for Modern Money Theory 211
L. Randall Wray
SECTION III RESOURCE CONSTRAINTS
17 Resource constraints 225
Sam Levey
18 Resource constraints and economic policy 236
Yeva Nersisyan
19 Why Social Security can’t go “broke” 248
Kerry Pechter
20 The Modern Money Theory approach to provisioning for an aging population 262
Yeva Nersisyan and L. Randall Wray
SECTION IV MODERN MONEY THEORY AND THE EXTERNAL SECTOR
21 The Modern Monetary Theory perspective on the external economy 273
William Mitchell
22 Modern Money Theory and exchange rates 291
John Harvey
23 Money, foreign exchange and the balance of payments 301
Michael Hudson
SECTION V MODERN MONEY THEORY AND ECONOMIC DEVELOPMENT
24 Modern Monetary Theory as an analytical framework and a policy lens:
an African perspective 312
Ndongo Samba Sylla
25 Harnessing sovereign money for development finance and solving the
debt conundrum: the case of China 327
Yan Liang
26 Job Guarantee as sustainable development policy: balancing China’s
economic development and ecological civilization 340
Yijiang Huang
SECTION VI MODERN MONEY THEORY AND ECONOMIC POLICY
27 The politics of apolitical money: Paul Volcker and monetary policy in action 350
David Stein
28 Fiscal policy in the Eurozone 362
Dirk Ehnts
29 Sovereign currency and non-sovereign budgets: the Modern Money
Theory approach to provincial, state, and local government budgets 376
L. Randall Wray
30 Is Overt Monetary Financing a viable option in the post-pandemic era? 384
Martin Watts
31 Electricity provisioning under the Green New Deal: a Modern
Monetary Theory approach 397
Avraham I. Baranes and Mitchell R. Green
32 The regional Job Guarantee: fostering economic democracy and
promoting public participation 409
Michael J. Murray
SECTION VII RESPONDING TO CRITICS
33 Modern Money Theory and the monetary system: a reply to critics 418
Eric Tymoigne
34 Modern Money Theory policymaking praxis: a response to critics 430
Eric Tymoigne
35 Modern Money Theory policymaking praxis and financial and
economic stability: a response to critics 443
Eric Tymoigne
