Modern Monetary Theory and European Macroeconomics
Full course description
The course introduces students to modern monetary theory. The balance sheets and transactions that are relevant for understanding modern money are examined, with a focus on the Eurozone. Alternative explanations are brought forward that include the idea that banks can create money, that governments spend first and collect taxes later and that central banks use a set of interest rates as their main tool of policy instead of manipulating the money supply. This is the 2nd edition of the class, with the first one scoring 8.83/10 in the evaluation of last year.
• Knowledge of central banks and monetary policy • Understanding the operations of the Treasury and fiscal operations • Grasp of the credit creation and clearing process in the banking system • Ability to aggregate balance sheets in order to use sectoral balances as a tool for macroeconomics • Insights on the economic history of the eurozone, its crisis and possible remedies
Ehnts, Dirk. 2017. Modern Monetary Theory and European Macroeconomics, Abingdon: Routledge (ISBN hardcover and ebook: 978-1-138-65477-8 and 978-1-315-62303-0)