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1. The Basics of Modern Money Theory -- 2. The Basics of Macroeconomic Accounting -- 3. Spending by Issuer of Domestic Currency -- 4. The Domestic Monetary System: Banking and Central Banking -- 5. Fiscal Operations in a Nation That Issues Its Own Currency -- 6. Tax Policy for Sovereign Nations -- 7. Modern Money Theory and Alternative Exchange Rate Regimes -- 8. Monetary and Fiscal Policy for Sovereign Currencies: What Should Government Do? -- 9. Policy for Full Employment and Price Stability -- 10. Inflation and sovereign currencies -- 11. Conclusions: Modern money theory for sovereign currencies.

Front Cover -- A Great Leap Forward -- A Great Leap Forward: Heterodox Economic Policy for the 21st Century -- Copyright -- Contents -- Acknowledgment -- Introduction -- A - The trouble with financialization -- I. What causes financial crises? -- II. The rise of financialization, neocons, and the ownership society -- III. The dark recesses of the financial system: why no one saw "it" coming -- IV. The global financial crisis explained -- V. The role of lender fraud -- VI. The four developments that precipitated the crisis -- a Managed money -- b Investment banks -- c Deregulation and desupervision -- The rise of fraud as normal business procedure -- VII. Fraud as a business model -- VIII. The Wall Street bailout -- IX. Why we are screwed: it will happen again -- X. Did we learn anything from the crisis? -- XI. The end of money manager capitalism? -- References -- Further reading -- B - The road to social progress -- I. Aging, social security, and pensions -- a Demographics and infinite horizon calculations of burdens -- b How to pay for social security: truth and fictions -- c Social security, subway tokens, and pizza coupons -- d Private pensions: an introduction -- Reforming pension fund and private savings strategies -- II. Health insurance versus Healthcare -- a Healthcare diversions: the elephant in the room -- b Health insurance diversions: we need less health insurance, not more -- c Health insurance diversions: the financialization of health (and everything else) -- d Selling death -- The compulsive push for single payer -- III. Conclusion -- References -- C - Tackling poverty and inequality. The road to full employment and price stability -- I. Poverty and the trickle-down economy -- a One percenters -- b Rising tide -- II. Addressing inequality -- a Redistribution or preredistribution? Uncle Sam should not play Robin Hood.

Cover -- Title -- Copyright -- CONTENTS -- Preface -- Introduction -- 1 Overview of Minsky's Main Contributions -- 2 Where Did We Go Wrong? Macroeconomics and the Road Not Taken -- 3 Minsky's Early Contributions: The Financial Instability Hypothesis -- 4 Minsky's Views on Money and Banking -- 5 Minsky's Approach to Poverty and Unemployment -- 6 Minsky and the Global Financial Crisis -- 7 Minsky and Financial Reform -- 8 Conclusion: Reforms to Promote Stability, Democracy, Security, and Equality -- Notes -- Further Reading -- The Collected Writings of Hyman P. Minsky -- Index.

Intro -- Contents -- List of Figures -- Chapter 1: The Basics of Macroeconomic Accounting -- 1.1 The Basics of Accounting for Stocks and Flows -- 1.1.1 One's Financial Asset Is Another's Financial Liability -- 1.1.2 Inside Wealth Versus Outside Wealth -- 1.1.3 A Note on Nonfinancial Wealth (Real Assets) -- 1.1.4 Net Private Financial Wealth Equals Public Debt -- 1.1.5 Rest of World Debts Are Domestic Financial Assets -- 1.1.6 A Note on the Importance of Inside Assets -- 1.1.7 Basics of Sectoral Accounting, Relations to Stock and Flow Concepts -- 1.1.8 Another Note on Real Assets -- 1.1.9 Conclusion: One Sector's Deficit Equals Another's Surplus -- 1.2 MMT, Sectoral Balances, and Behavior -- 1.2.1 Deficits→Savings and Debts→Wealth -- 1.2.2 Conclusion -- 1.3 Stocks, Flows, and Balance Sheet: A Bathtub Analogy -- 1.4 Government Budget Deficits Are Largely Nondiscretionary: The Cases of the Great Recession of 2007 and the COVID-19 Pandemic -- 1.5 The Wray Curve: Two Paths to Deficits -- 1.6 Accounting for Real Versus Financial (or Nominal) -- Chapter 2: Spending by Issuer of Domestic Currency -- 2.1 What Is a Sovereign Currency? -- 2.1.1 Domestic Currency -- 2.1.2 One Nation, One Currency (and Exceptions to the Rule) -- 2.1.3 Sovereignty and the Currency -- 2.2 What Backs Up Currency and Why Would Anyone Accept It? -- 2.2.1 Do Reserves of Metal or Foreign Exchange Back the Currency? -- 2.2.2 Legal Tender Laws -- 2.3 Taxes Drive Money -- 2.3.1 Sovereignty and Taxes -- 2.3.2 What Does Government Promise? What Does a Government IOU Owe You? -- 2.3.3 Conclusion: Taxes Drive Money -- 2.4 What If the Population Refuses to Accept the Domestic Currency? -- 2.5 Record Keeping in the Money of Account -- 2.5.1 Stocks and Flows Are Denominated in the National Money of Account -- 2.5.2 The Financial System as Electronic Scoreboard.

This paper will present the Modern Money Theory approach to government finance. In short, a national government that chooses its own money of account, imposes a tax in that money of account, and issues currency in that money of account cannot face a financial constraint. It can make all payments as they come due. It cannot be forced into insolvency. While this was well‐understood in the early post‐war period, it was gradually "forgotten" as the neoclassical theory of the household budget constraint was applied to government finance. Matters were made worse by the development of "generational accounting" that calculated hundreds of trillions of dollars of government red ink through eternity due to what neoconservatives label "entitlements" (largely, Medicare and Social Security). As austerity measures were increasingly adopted at the national level, fiscal responsibility was shifted to state and local governments through "devolution." A "stakeholder" approach to government finance helped fuel white flight to suburbs and produced "doughnut holes" in the cities. To reverse these trends, we need to redevelop our understanding of the fiscal space open to the currency issuer—expanding its responsibility not only for national social spending but also for helping to fund state and local government spending. This is no longer just an academic debate, given the challenges posed by climate change, growing inequality, secular stagnation, and the rise of Trumpism.

Summary The article analyses the behaviour of fiscal policy from the perspective of the Modern Money Theory (MMT), for which the fiscal deficit does not matter. This represents a net injection of expenditure into the economy and generates private sector surpluses — by keeping the external sector's balance constant —. It is not possible to talk about reducing the fiscal deficit without considering the balance sheet of the private sector and the external sector. Whether the economy has a current account deficit in the balance of payments, and the private sector has financial problems and is not investing; reducing the fiscal deficit leads the economy to recession. Attempts to reduce the fiscal deficit may be counterproductive, as gross domestic product (GDP) growth, such as tax revenues, diminishes gross domestic product (GDP) growth and increases the payment of transfers, which increases the fiscal deficit and the debt ratio. Reducing the government deficit requires a reduction in the primary surplus and a reduction of the current account deficit to boost growth, which increases tax revenues and reduces the payment of transfers. ; Resumen El artículo analiza el comportamiento de la política fiscal desde la perspectiva de la Teoría Moderna del Dinero (MMT por sus siglas en inglés), para la cual el déficit fiscal no importa. Éste representa una inyección neta de gasto en la economía y genera superávit del sector privado -al mantener constante el balance del sector externo-. No es posible hablar de reducir el déficit fiscal sin considerar el balance del sector privado y del sector externo. Si la economía tiene déficit de cuenta corriente en la balanza de pagos, y el sector privado tiene problemas financieros y no está invirtiendo; la reducción del déficit fiscal lleva la economía a la recesión. Los intentos de disminuir el déficit fiscal pueden ser contraproducentes, debido a que disminuyen el crecimiento del Producto Interno Bruto (PIB), como los ingresos tributarios, e incrementa el pago de transferencias, lo cual ...