The Elgar Companion to Modern Money Theory

Edited by Yeva Nersisyan, Associate Professor of Economics at Franklin and Marshall College, Research Scholar, Levy Economics Institute and L. Randall Wray, Senior Scholar, Levy Economics Institute and Professor of Economics, Bard College, US

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