My continued research into solutions for some of our most pressing societal issues led me to an incredibility good book that simplifies the concepts behind modern monetary theory. Author J. D. Alt uses visualization to simplify the theory, making how money works easier to understand. His book – Diagrams and Dollars – was recently added to my Book Library. The book’s premise is that we have the way money is created and its flow through the system backwards.
As I continue to research the societal factors that influence our future, I’ve explored broad topics from Government Deficits to Modern Monetary Theory. Most recently, I’ve looked into something that lies at the heart of many societal ills; unemployment and underemployment. That journey led me to my most recent book titled: A Job Guarantee. I just added a book – written by Pavlina R. Tcherneva – to my Book Library. Ms. Tcherneva is an American economist of Bulgarian descent, working as associate professor and director of the Economics program at Bard College.
Last week. I posted about modern monetary theory (MMT) and how it challenges conventional wisdom regarding deficits. In her recent book titled The Deficit Myth , Author Stephanie Kelton – Professor of Economics and Public Policy at Stony Brook University – explores the tenets of the theory and its implications to government spending. Progressive agendas aimed at solving the challenges of education, healthcare, climate change and others look at modern monetary theory as a possible solution. In contrast to borrowing money or raising taxes, the monetisation of government expenditure (its financing by the central bank’s creation of money) is costless, in that the government does not have to pay interest on cash.
The attention garnered by MMT has drawn its share of critics. In the interest of understanding both sides of this debate, I read a book titled Modern Monetary Theory and its Critics. The book is a series of essays edited by Edward Fullbrook and Jamie Morgan. As the authors state: in the wake of the decade of fiscal austerity following the Global Financial Crisis, and the apparent exhaustion of standard monetary policy strategies and the ever-increasing income disparity, interest in MMT has grown beyond academia. The skeptics provide a different point of view. As we search for answers to our pressing issues and strive to think differently, it’s prudent that we keep an open mind to these new ways of thinking, while at the same time, understanding their limitations. I recommend the book, which I have added to my Book Library.
I wrapped up another great book. This one focused on government deficits as viewed through the lens of Modern Monetary Theory. Author Stephanie Kelton addresses the topic in her recent book titled The Deficit Myth. In this best seller, Ms. Kelton – Professor of Economics and Public Policy at Stony Brook University – explores the role of currency issuers (U.S., Japan, U.K., Australia, etc.) versus currency users. From the book:
“The distinction between currency users and the currency issuer lies at the heart of Modern Monetary Theory. And as we will see in the pages ahead, it has profound implications for some of the most important policy debates of our time, such as health care, climate change, Social Security, international trade, and inequality.”