The course “Modern Monetary Theory” examines the role of money, the state and the financial system in the economy, taking as its starting point Keynesian thought that views the modern capitalist economy as a monetary structure.
The course introduces the methodology of stock-flow consistent models as well as the basic ideas and principles of modern monetary theory and the fiscal and monetary policy proposals that arise from them.
The topics to be covered include:
- The endogeneity of money
- Commercial banks, central banking and the financial system
- The link between the real and the financial side of the economy
- Dynamic analysis of the balance of financial balances of the institutional sectors
- The role of fiscal deficits in the stability of the financial system of the economy
- External and financial constraints on the conduct of fiscal policy
- Guaranteed employment programmes