Lecture Ten: Monetary Theory in Innovated Open Economies

In 2019, a textbook “Macroeconomics” was published in London, on the pages of which the authors presented a new monetary doctrine — Modern Monetary Theory, MMT, — an unorthodox concept based on the postulates of Post-Keynesianism, New Institutionalism, and the theory of Marxism. The attitude to this scientific concept in the scientific community is ambiguous. A smaller part of scientists actively support this doctrine, which is directly related to state monetary and fiscal stimulation of full employment, public debt servicing and economic growth. Others, the majority of economists, on the contrary, strongly criticize MMT, arguing that the new theory hides simple left-wing populism, designed for a temporary and short-term effect. This article considers the origins and the main provisions of MMT, its discussions with the mainstream, criticism of the basic tenets of MMT, and also assesses possible prospects for the development of MMT in the medium term.

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Rethinking the Monetarist Experience: Monetary Theory and Monetary Policy in the United States

HISTORY OF ECONOMIC THOUGHT AND POLICY ◽

10.3280/spe2013-001009 ◽

2013 ◽

pp. 161-179 ◽

Cited By ~ 1

Author(s):

Bradley W. Bateman ◽

Benjamin K. Johannsen

Keyword(s):

United States ◽

Monetary Policy ◽

The United States ◽

Monetary Theory

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Two Intellectual Landmarks in the Year 1749

Journal of Scottish Philosophy ◽

10.3366/jsp.2019.0231 ◽

2019 ◽

Vol 17 (2) ◽

pp. 101-123

Author(s):

Farhad Rassekh

Keyword(s):

Paradigm Shift ◽

David Hume ◽

Adam Smith ◽

Considerable Extent ◽

Monetary Theory ◽

Economic Theories ◽

Classical Economics ◽

Wealth Of Nations ◽

Economic Thinking

In the year 1749 Adam Smith conceived his theory of commercial liberty and David Hume laid the foundation of his monetary theory. These two intellectual developments, despite their brevity, heralded a paradigm shift in economic thinking. Smith expanded and promulgated his theory over the course of his scholarly career, culminating in the publication of The Wealth of Nations in 1776. Hume elaborated on the constituents of his monetary framework in several essays that were published in 1752. Although Smith and Hume devised their economic theories in 1749 independently, these theories complemented each other and to a considerable extent created the structure of classical economics.

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