generate changes in the money supply with the aim of stabilizing output at full employment. He believed that the economy is … inherently unstable because of endogenous movements in money supply under a fractional-reserve banking system. In her work, Anna … Schwartz downplayed the role of monetary factors of business cycles and the role of monetary policy as a stabilization tool. We …

This article examines the misconceptions about modern money theory (MMT) put forward by . The author divides her … means-of-payment function of money, that it considers money as a pure asset, that it does not distinguish between inside and … outside money, and that it does not distinguish between money and the monetary base. Second, Drumetz/Pfister (2021) falsely …

he then abandoned for a simple constant money growth rule. Both rules were motivated by his goal of long-run economic …

arithmetic of Sargent and Wallace (1981) states that in a fiscally dominant regime tighter money now can cause higher inflation …

We analyze money financing of fiscal transfers (helicopter money) in two simple New Keynesian models: a "textbook …" model in which all money is non-interest-bearing (e.g., all money is currency), and a more realistic model with interest …-bearing reserves. In the textbook model with only non-interest-bearing money, we find the following: A money-financed fiscal expansion …

money, the private sector necessarily realizes savings, in the form of either government bond purchases or, if a default is … feared, “acquisitions” of new money. …

We have helicopter money when there is a lump-sum monetary transfer which produces intended central bank capital losses … central bank can credibly define a social optimal helicopter money. But as the redistributive effects of helicopter money …, a multiple equilibria setting arises and the central bank helicopter money becomes unlikely …

One of the main contributions of Modern Money Theory (MMT) has been to explain why monetarily sovereign governments …

Modern Money Theory (MMT) has generated considerable scrutiny and discussions over the past decade. While it has gained …