Understanding Modern Money: The Key to Full Employment and Price StabilityIn this innovative and very practical book, L. Randall Wray argues that full employment and price stability are not the incompatible goals that current economic theory and policy assume. Indeed, he advances a policy that would generate true, full employment while simultaneously ensuring an even greater degree of price stability than has been achieved in the 1990s. Wray's clearly written argument incorporates incisive historical analysis, modern monetary theory, and an examination of policy alternatives that rises above the doctrinal debates among monetarists, supply-siders and Keynesians over natural or non-inflationary rates of unemployment. Understanding Modern Money proclaims that a labor buffer stock program would guarantee full employment and increase labor productivity and economic growth, while reducing inflationary pressures. Wray's analysis shows that, contrary to popular belief, the dangers of a government budget deficit are largely imaginary. He outlines a program in which the government acts as employer of last resort, thereby providing employment and training to the otherwise unemployed, and stabilizing the wage scale which acts as a brake on inflation. This permits greater price stability without requiring conventional methods such as wage and price controls or countercyclical monetary policy. This ground-breaking book offers important new ways of thinking for policymakers, students, and general readers interested in economics, employment policies, and monetary theory. |
From inside the book
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... created during the normal , and important , processes of a capitalist economy and is not created and dropped by helicopters ( as in Milton Friedman's famous exogenous , helicopter , money story ) . For the most part , bank money is created ...
... created deposits in tax and loan accounts , draining reserves as necessary . " Again , it is clear that such bond sales ... create the deposits in tax and loan accounts that can then be drained whenever desired to remove excess reserves ...
... created ' ; more succinctly , ' loans create deposits ' . Thus the horizontal money supply is endogenously determined , while the short - term interest rate is exogenously determined . Finally , close examination of coordination of ...
Contents
Introduction | 1 |
The Chartalist Approach | 18 |
An Introduction to a History of Money | 39 |
Copyright | |
7 other sections not shown
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Understanding Modern Money: The Key to Full Employment and Price Stability L. Randall Wray No preview available - 2006 |