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Thursday, March 11, 2021

Modern Monetary Theory and the Recovery


My latest book Modern Monetary Theory and the Recovery has just been released in e-book and paperback format on most large online book platform. In addition to being able to buy directly from using the widget to the left, links to all bookstore are found at Books2Read (link). It is an examination of the reasons for slow growth in the past decades, and what policies might be undertaken to ensure stronger growth. The book gives a streamlined introduction to Modern Monetary Theory (MMT), aimed at readers with some knowledge of economics but not of MMT.


This book discusses the causes of slow growth in the developed world after the early 1990s from a Modern Monetary Theory perspective. Policy proposals from MMT proponents that aim to rejuvenate the labour market without causing a resurgence of inflation will be examined.

Modern Monetary Theory is an outgrowth of the heterodox post-Keynesian school of economics, and the overall scope of the theory is often obscured, or mangled, in popular discussions. This text outlines its key concepts with the objective of reducing confusion.

Given the reality that MMT arguments are hotly debated, this book concludes with a chapter of criticisms of MMT.

Book Description

The book is roughly 50,000 words, and the paperback edition is 143 pages (excluding end matter). 

The book is somewhat more advanced than many online MMT primers, but it should be understandable by readers of the business press. The book refers frequently to works by MMT academics, and thus offers readers guidance to where a literature survey could start. Instead of using footnotes, references are given at the end of text sections (as well as embedded hyperlinks in the e-book editions).

Book Sections

Chapter 1 Overview
1.1 Introduction
1.2 What Is MMT? (Short Version)
1.3 MMT Politics
1.4 About this Book
Chapter 2 The Era of Sluggish Recoveries
2.1 Introduction
2.2 Labour Market Evolution
2.3 NAIRU, and Other Will-o’-the-Wisps
2.4 The Drift to Austerity
2.5 The Rise and Decline of Inflation Targeting
Chapter 3 Doing Better
3.1 Introduction
3.2 Fiscal Policy Reform
3.3 The Job Guarantee
3.4 Green New Deal
3.5 Changing Governmental Financing Procedures
3.6 Guessing About the Future
Chapter 4 What Is MMT? (Longer Version)
4.1 Introduction
4.2 The Mosler White Paper
4.3 Price Level Determination
4.4 Fiscal Sustainability
4.5 Theory of Inflation
4.6 Broad MMT
Chapter 5 Frequently Raised Critiques
5.1 Introduction
5.2 Non-Answerable Critiques
5.3 Rhetorical Tricks (and Money Printing)
5.4 Need to Lie to Politicians and Voters
5.5 Inflation Worries
5.6 Active Fiscal Policy Required?
5.7 MMT Ignores the Banking System?
5.8 Post-Keynesian Squabbling
5.9 Net Financial Asset Skepticism
5.10 Only Applicable to United States?
5.11 Replication in a Neoclassical Framework?
5.12 Nothing New?

 (c) Brian Romanchuk 2021


  1. Got the book!

    Financial markets crying wolf again on inflation?

    1. Thanks. The only time that people in markets are not worried about inflation is in the middle of an economic collapse. So this is just a return to normality,

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