In the aftermath of the Great Financial Crisis (GFC), and within the context of significant macroeconomic imbalances in the world economy, economists have shown renewed interest in the way central banks and financial systems work. The rise of Modern Monetary Theory (MMT) has relied on the...

In der Septemberausgabe 2017 veröffentlichte der Wirtschaftsdienst einen Aufsatz von Georg Quaas zur aktuellen Kritik an der makroökonomischen Geldtheorie. Dirk Ehnts setzt sich mit diesem Aufsatz kritisch auseinander und vertritt die Auffassung, dass auch heute noch in weiten Teilen der Lehre...

Die Modern Monetary Theory (MMT) ist eine empirische Geldtheorie und nutzt insbesondere Bilanzen und Buchungen als methodische Grundlage zur Erkenntnisgewinnung. Nach der funktionalen Ausgestaltung moderner Geldsysteme, in denen die Regierung keine Schulden in Auslandswährung hat oder einen...

Die Covid-19-Pandemie und die russische Invasion in der Ukraine haben, zusammen mit dem Bericht des Weltklimarats im April 2022, die Welt verändert. Um die globalen Probleme des 21. Jahr-hunderts lösen zu können, müssen wir einen frischen Blick auf die Welt werfen. Aus der Vogelperspektive...

In this paper, we discuss the balance sheet mechanics of the Swedish government. We examine spending, government bond purchases, and tax payments. As long as the Swedish central bank, which is created through Swedish laws, supports the Swedish central government, it cannot run out of money. The...

The German debt brake forces the German government to target a very specific public deficit to GDP ratio. A ruling of the German constitutional court has drawn attention to the debt brake, as it is to be enforced more tightly than the federal German government previously thought. In this...

The Alchemy of Finance, a book written by George Soros (1987) on the workings of financial markets, 'has found a place in the reading lists of business schools as distinct from economics departments', according to the author (2003, 4). His theory of reflexivity, which is at the center of the...

In his letter to US President Franklin D. Roosevelt Keynes (1933) wrote about "the technique of recovery itself". An increase in output is brought about by an increase in purchasing power, Keynes argues, which can come from three sectors: households, firms and government. Using the IS/MY...

Standard presentations of stock-flow consistent modeling use specific Post Keynesian closures, even though a given stock-flow accounting structure supports various different economic dynamics. In this paper we separate the dynamic closure from the accounting constraints and cast the latter in...

The economic crisis in the euro zone proves that neither the creators of the euro nor today's policy-makers fully understand the functioning of a currency union. Explanations of the macroeconomic relations inside a currency union are therefore in demand. It is now clear that macroeconomic...