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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... valuta money is a component of definitive money , namely that which it will provide in payment . * In Germany our gold pieces were valuta , not because they were made of gold ... but only because the State , when it made a payment , was ...
... valuta money , into which it promised redemption . ' A bank - note is a chartal document , which specifies a sum of valuta money ; and the bank issuing it is pledged by law to accept it for a payment of that amount ' ( ibid . p . 134 ) ...
... valuta money ) . If the state accepts banknotes in payment , but does not make payments in these banknotes , then the notes will be redeemed - leading to a drain of ' reserves ' of valuta money ( indeed , governments and central banks ...
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 |