This class will delve into the differences between Modern Monetary Theory and New Currency Theory (only recently devised). Does MMT hold the only solutions for monetary or banking reform? Or is NCT have better options? We’ll read this position paper from the latest Real-World Economics Review to understand the nuances of our debt based financial system:
Michael Hudson’s ‘The Bubble and Beyond’ will also be mixed in the discussion. Chapter 3, ‘How Economic Theory Came to Ignore the Role of Debt’ and chapter 6 ‘The Financial Character of Today’s Crisis’ will attempt to clear up misconceptions about debt in economics. I will scan these chapters and make them available as soon as possible.
see you there!