Tag Archives: policy space

Abstract Since the global financial crisis ten years ago, a mature research programme has developed on the austerity policies imposed, especially in European states, to counter perceived threats from excessive public debt and deficits. While many scholars have criticised austerity for digging the hole deeper, fewer have provided clear alternatives. Yet, the economic school of Modern Money Theory encourages analysis into the operational realities of monetary systems to examine mechanisms,...

MMT itself is just a description of how the monetary system works in the UK, US, Canada, Australia, the EMU – everywhere there is a monetary economy. I dislike quibbling, but MMT is prefaced by an operational description of how monetary systems work, paying particular attention to the existing monetary system. This analysis reveals the policy space associated with policy choice regarding the monetary system and monetary operations. MMT is based on this analysis of policy space....

... a government’s monetary sovereignty creates a potential for meaningful social progress. But it is only a potential, and can only be fulfilled through genuine democracy conducted by an informed citizenry. Right now, it is perhaps fair to say that an informed citizenry and, as a consequence, genuine democracy, are almost entirely lacking in the specific area of macroeconomics. At minimum, an informed citizenry would understand that, due to monetary sovereignty:If we can do it, we can...