Bill Mitchell and Randy Wray
Our (very incomplete) textbook home page –– has draft chapters and contents etc in varying states of completion. Comments are always welcome.
Saturday Quizzes and Answers prepared by Australian economist Bill Mitchell, based on his weekly blogs
Eric Tymoigne's Money and Banking course - see blog posts below, has now also been edited into a text also available on-line.
"Gone is the money multiplier theory, gone in the financial intermediary theory of banks, gone is the idea that central bank control monetary aggregates, gone is the idea that finance is neutral in any range of time, and gone is the idea that nominal values are irrelevant. Preoccupations about monetary gains, solvency and liquidity are central to the dynamics of capitalism, and finance is not constrained by the amount of saving."
The textbook uses the blog posts but has thoroughly edited and expanded them; everything is also formatted so that the material is easier to read.
Link to book is here
MMT in Small Bits
The sovereign government monopolizes the issuance of currency.
If the coins and dollar bills in your pocket don't come from government, they're counterfeit.
This has profound implications for economics.
"Look at a dollar bill, and you will see the signatures of its creators: not taxpayers, but the public officials who let the taxpayers hold it in the first place."
The sovereign government spends currency first and then collects taxes in currency later.
Taxpayers must obtain the sovereign government's currency in order to pay taxes.
"......if taxpayers pay their taxes using currency, then government must first spend before taxes can be paid. Again, all of this was obvious two hundred years ago when kings literally stamped coins in order to spend, and then received their own coins in tax payment."