Where can I learn Modern Monetary Theory?

Where can I learn Modern Monetary Theory?

Modern Monetary Theory (MMT) is an economic model which has gained popularity amongst some progressive and some heterodox economists and has been frequently cited by both those who support large-scale public spending and those who favour more modest spending cuts. The fundamental principle of the model, which relies on supply and demand in relation to the money supply and interest rates, states that any economic activity will be determined by whether there is enough money available to pay for it. If the supply of money is higher than the demand for money, then the economy will fail to generate enough investment or income, thus resulting in a recession or stagnation.

Modern Monetary Theory also states that any increase in the amount of money available to cover the increase in demand for that money will necessarily have to occur at the same time as an increase in the supply of money. If there is not enough money to cover the increased demand for it, then the economy will stagnate, which is also an outcome of the principle. According to the theory, if the amount of money available to finance public expenditure is increased faster than the rate of inflation (which can occur only if the value of the money increases faster than the rate at which the prices of goods and services rise), then there will be a shortage of money and there will be no way for the government to meet the increased demand for money.

Modern Monetary Theory is very closely related to Keynesian economics and monetarism, which are also used in economic policy circles and are similar in some ways. However, the main difference between the two is that in monetarism, the government issues the money whereas in Keynesian theory, money is produced by private industries, or banks. There are many types of monetarist policies that could be implemented, which are intended to increase the growth of the economy.

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