Modern Money and Sovereign Currency

A Discussion of New Currency Theory (NCT) and Modern Money Theory (MMT)

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Modern Money Theory (MMT) has developed since the mid-1990s. Some monetary reformers hope for support from MMT. New Currency Theory (NCT) and Modern Money Theory (MMT) indeed share a number of analytical views. It nonetheless turns out that MMT - in spite of its claim to stand for a sovereign-currency system - is closer to representing new banking doctrine rather than currency teaching.

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Here is an article on > Modern Money Theory and New Currency Theory. A comparative discussion, including an assessment of their relevance to monetary reform  
published in the Real-World Economics Review, no.66, 13 January 2014. A first draft of the paper was presented at the American Monetary Institute's 9th Annual Monetary Reform Conference, Chicago, 19–22 September 2013.

Modern Money and Sovereign Currency

Book manuscript. 100 pages. Book contents can be called up subchapter-wise below.
Book page numbers are indicated as /x/.
You may also > download the manuscript as a PDF.


• Cullen Roche has made a comprehensive > Critique of Modern Money Theory in 2011 from his Monetary Realism point of view. This converges and overlaps in quite many aspects with the analysis given here.   

 Marc Lavoie > The monetary and fiscal nexus of neo-chartalism: A friendly critical look into MMT (2011), University of Ottawa, Department of Economics

• Brett Fiebiger > Modern Money Theory and the 'Real-World' Accounting of 1 - 1 < 0, PERI, University of Massachussets Amherst, Working Paper Series No. 279, Jan 2012.


• Stephen Zarlenga, American Monetary Institute, dealt with Mitchell-Innes' misleading equating of money with credit, or debt resp., in 2002 > Critique of Innes' 'credit theory of money'.  
In 2013 followed a critical > Evaluation of Modern Money Theory MMT by Steven Walsh and Stephen Zarlenga.

Clint Ballinger contributes to discussing MMT > on his homepage


Joseph Huber on Modern Money and New Currency Theory