Modern Money Theory: Week 2

James E Keenan

Henry George School of Social Science
November 16 2020

Table of Contents

1. Introduction

2. Review of Previous Session
3. You'll Also Remember ...
4. You'll Further Remember ...
5. [B[Pause for Questions]B]

6. Methodological Issues
7. Stage 1: Description
8. Stage 2: Inference
9. Stage 3: Prescription
10. Sequence of Three Questions
11. Description and Prescription in the Next Year
12. Household Budget Analogy
13. [B[Pause for Questions]B]

14. Monetary Sovereignty
15. Monetary Sovereignty: First 3 Conditions
16. Monetary Sovereignty: 3 More Conditions
17. A Spectrum of Monetary Sovereignty
18. Monetarily Sovereign Countries
19. "Dirty" Floats and "Clean" Floats
20. No Foreign Denominated Debt
21. Four Ways Countries Can Lack Monetary Sovereignty
22. Borrowing in Foreign Currency Limits Monetary Sovereignty
23. Currency Union Membership Precludes Monetary Sovereignty
24. The CFA - a Post-Colonial Currency Union
25. Using Currency of Different Country Forfeits Monetary Sovereignty
26. [B[Pause for Questions]B]

27. Why Monetary Sovereignty Matters
28. Monetary Sovereignty and Domestic Economic Problems
29. U.S. Federal Government Response
30. What If We Weren't Monetarily Sovereign?
31. But Poor New York and Poor New Jersey As Well
32. [B[Pause for Questions]B]

33. Sector Balances
34. Bookkeeping
35. Purge Connotations from Your Mind
36. A Simple 2-person Economy
37. Regroup Terms on One Side
38. Graph It!
39. A Simple Two-sector Economy
40. Changes in Sectors' Financial Balances Must "Net Out"
41. Flow of Funds between Government and Non-Government Sectors (Period 1)
42. Sector Balances after Period 1
43. Flow of Funds between Government and Non-Government Sectors (Period 2)
44. Sector Balances after Period 2
45. Flow of Funds between Government and Non-Government Sectors (Period 3)
46. Sector Balances after Period 3
47. [B[Pause for Questions]B]
48. A Simple Three-sector Economy
49. Flow of Funds among Three Sectors (Period 1)
50. Sector Balances after Period 1
51. Flow of Funds among Three Sectors (Period 2)
52. Sector Balances after Period 2
53. Positive and Negative
54. [B[Pause for Questions]B]

55. Sector Balances in the U.S. Economy
56. A Look at the Data
57. Foreign Sector of U.S. Economy
58. Domestic Private Sector of U.S. Economy (1)
59. Domestic Private Sector of U.S. Economy (2)
60. Government Sector of U.S. Economy (1)
61. Government Sector of U.S. Economy (2)
62. U.S. Sector Balances, 1952-2012
63. Two-Person Economy Redux

64. Summary
65. [B[Pause for Questions]B]