Modern Monetary Theory and Practice - an Introductory Text

The Global Financial Crisis demonstrated beyond any doubt the poverty of the mainstream, free-market economic approach that is almost universally taught in university courses around the world.

The failure of the system to self-regulate exemplified what Marx, Keynes, Kalecki and other heterodox economists have known for a long time - that the Capitalist system is inherently unstable and requires strong government oversight.

This text goes further though because it is the first teaching program based on what is now known as Modern Monetary Theory (MMT), which has emerged over the last two decades and now presents itself as the only viable body of macroeconomic thought that can not only detail the operational realities of the monetary systems that nations employ but also explain why the mainstream approach is inherently misleading and erroneous.

Latest News

Modern Monetary Theory and Practice - an Introductory Text is now published (as of March 10, 2016) and available for purchase.

This version of the book has been tailored for students in an introductory macroeconomics program.

You can find out how to purchase the book from our Purchase Page.

It is based on the principles of Modern Monetary Theory (MMT) and includes the following detailed chapters:

Chapter 1: Introduction
Chapter 2: How to Think and Do Macroeconomics
Chapter 3: A Brief Overview of the Economic History and the Rise of Capitalism
Chapter 4: The System of National Income and Product Accounts
Chapter 5: Sectoral Accounting and the Flow of Funds
Chapter 6: Introduction to Sovereign Currency: The Government and its Money
Chapter 7: The Real Expenditure Model
Chapter 8: Introduction to Aggregate Supply
Chapter 9: Labour Market Concepts and Measurement
Chapter 10: Money and Banking
Chapter 11: Unemployment and Inflation
Chapter 12: Full Employment Policy
Chapter 13: Introduction to Monetary and Fiscal Policy Operations
Chapter 14: Fiscal Policy in Sovereign nations
Chapter 15: Monetary Policy in Sovereign Nations

Note: - There is a typographical mistake in the book which although not repeated might throw your understanding.

On Page 138, Equation 7.15a is written as

(7.15) Y = E = A + [c(1-t) - m]Y

and solving for Y is then stated to give

(7.16) Y[1 - c(1-t) - m] = A

however this should instead read Y[1 - c(1-t) + m] = A.

Thanks to Brian S. for picking this up.

In June 2016, a full version of the book - Macroeconomics in the 21st Century: A Modern Monetary Theory text - will be published and available for sale, which will augment the Introductory Text with material sufficient to engage students through to the end of the intermediate studies. The complete version will thus be of use to lecturers and students in first-year and second-year of a macroeconomics study course and those in MBA programs who desire a comprehensive introduction to the subject.

By the beginning of the Northern academic year (September 2016), there will be an Instructor's Handbook available with guided tutorial and laboratory material to augment the conceptual development in the complete textbook.

There will also be video materials, datasets, and econometric tools available on-line to enhance the students' learning experience.

Notice to University of Newcastle (Australia) students

Please visit the - following page - to learn how you can download a digital copy of the Textbook, while you are waiting for Amazon to post your purchased copy.

Resources Available

Once the Resource Page is completed, we will present:

1. Essential Learning Tools
2. Self-assessment quizzes
3. Slideshow presentations
4. Multimedia presentations (films, audio etc)
5. Access to policy notes which show interesting and topical applications of the conceptual material being presented
6. Quantitative exercises to develop your numerical reasoning
7. Further readings to extend your knowledge

Centre of Full Employment and Equity (CofFEE)
University of Newcastle
Callaghan NSW 2308

© William Mitchell 2016


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