The purpose of our paper is to review the literature on new monetary economics in order to understand its basic premises and to assess how it fits into the contemporary money and banking literature.

Using an extension of a standard rent-seeking model, this paper shows that "inclusiveness", as defined and measured in the text, is the property of a political system that motivates government to deter destructive rent seeking. Highly-inclusive polities are likely to be democracies since...

This note argues that, broadly speaking, democracies have a comparative advantage over dictatorships in keeping rent-seeking costs down by imposing penalties that reduce returns to scale in rent-seeking. Dictatorships have a comparative advantage in restricting the number of rent-seekers through...