Modern Monetary Theory - A Primer on the Operational Realities of the Monetary System

Scott T. Fullwiler

Wartburg College; Bard College - The Levy Economics Institute

August 30, 2010

At its core, there are two parts to Modern Monetary Theory (MMT). The first is a description of how the monetary system actually works, mostly focusing upon interactions between the central bank, the treasury, and the financial system, though this part also requires a very thorough understanding of the Minskyan-related literature of many MMT’ers. The second is a set of policy proposals that arise from this description and is largely outside the scope of this particular post but which can be found in any number of MMT publications and blogposts.

Of critical importance to most of MMT’s description of the monetary system is its elaboration of the system’s operational realities. This post provides a detailed description of what "operational realities" means in MMT, and then applies it to a number of core issues related to the monetary system.

Number of Pages in PDF File: 5

Keywords: Modern Monetary Theory, Chartalism, Monetary Operations

JEL Classification: E40, E42

Open PDF in Browser Download This Paper

Date posted: December 10, 2010  

Suggested Citation

Fullwiler, Scott T., Modern Monetary Theory - A Primer on the Operational Realities of the Monetary System (August 30, 2010). Available at SSRN: https://ssrn.com/abstract=1723198 or http://dx.doi.org/10.2139/ssrn.1723198

Contact Information

Scott T. Fullwiler (Contact Author)
Wartburg College ( email )
222 Ninth St. NW
Waverly, IA 50677
United States
Bard College - The Levy Economics Institute ( email )
Annandale-on-Hudson, NY 12504-5000
United States
Feedback to SSRN

Paper statistics
Abstract Views: 7,212
Downloads: 1,853
Download Rank: 5,919