Toward a Comprehensive MMT

The name Modern Monetary Theory (MMT) implies that we have a comprehensive theory of fiat money and monetary policy. Unfortunately, most MMT authors limit their discussions to the creation aspect of money, thereby avoiding the mundane (but more important) discussion of using money for everyday transactions. To be comprehensive, MMT needs to embrace theory describing both the creation of money and the use of money--two distinctly different monetary events.

Notating Discontinuities in Long Time Series

A Brian Romanchuk post uses math that requires a starting point in a time series. Starting something creates a discontinuity in any temporal display that might appear in a chart. I would like to suggest a better way to notate the time series used by Brian.

A Mechanical View of SFC Modeling for Beginners

[Disclaimer: I am writing this article as a method of personally improving my own SFC techniques. (Over the years, I find that new material is understood much quicker and with more comprehension if I first try to put-it-together myself. It's kind of a 'put-it-together first, then read the instructions' approach.)]

The Stock-Flow consistent (SFC) model technique is a method students and thinkers can use to build models by using consistent money flows and stocks. Accounting principals are followed by ensuring that all monetary trades are balanced with an exchange of product and monetary equivalent.

SFC models can be built to display the NIPA sectors and GDP, or they can be built to display other economic events. The focus here will be to build two progressively more detailed SFC models, thereby preparing the reader for the next step of understanding the yet more detailed models found in 'beginning' texts.