Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/249780 
Authors: 
Year of Publication: 
2021
Series/Report no.: 
Working Paper No. 992
Publisher: 
Levy Economics Institute of Bard College, Annandale-on-Hudson, NY
Abstract: 
Many of the claims put forth by Modern Monetary Theory (MMT) center around the state's monopoly over its own currency. In this paper I interrogate the plausibility of two claims: 1) MMT's theory of the price level - that the price level is a function of prices paid by government when it spends - and 2) the claim that the cause of deficient effective demand is the state's failure to supply government liabilities so as to meet the demand for net financial assets. I do so by building a model of "monopoly money" capable of producing these two outcomes.
Subjects: 
Modern Monetary Theory
Price Level
Monopoly Money
Durapoly
Deficient Effective Demand
JEL: 
E4
E62
B52
D42
Document Type: 
Working Paper

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