This paper investigates how the concept of public purpose is used in Modern Monetary Theory (MMT). As a common denominator among political scientists, the idea of public purpose is that economic actions should aim at benefiting the majority of the society. However, the concept is to be...

Introduction; Theoretical foundations; Substance and purposes of economic activity; Money and credit; Debts and balance sheets; The creation of bank deposits; The creation of central bank deposits; The instruments of a central bank (monetary policy); The creation of sovereign securities (fiscal...

In 1905, Georg Friedrich Knapp published The State Theory of Money in his native German, claiming that money is a "creature of law" and not connected to metals via some intrinsic value. When the English translation appeared in 1924, apparently at the wishes of John Maynard Keynes, the German...

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...

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...