Publications

88 publications found, searching for 'Money '

• Working Paper No. 1101
  November 18, 2025

  Currencies Come and Go, but Employment Always Takes Root

  Esteban Cruz-Hidalgo, Stuart Medina-Miltimore, and Agustín Mario
  Abstract

  This paper explores a development strategy for peripheral economies by advocating for a paradigm shift from traditional economic models that rely on accumulating foreign reserves. It proposes the job guarantee…more

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• Working Paper No. 1088
  August 01, 2025

  The Job Guarantee: Lessons from Argentina’s Jefes Plan and Its Reform

  Agustín Mario
  Abstract

  According to current macroeconomic models, there is a need to maintain a natural rate of unemployment to contain inflation. Put simply, unemployment is considered an (inevitable) cost of price stability….more

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• Working Paper No. 1084
  July 09, 2025

  MMT: Heuristics versus Paradigm Shift?

  L. Randall Wray
  Abstract

  This is a revised version of the keynote address presented at the FDR library for the Levy Institute Summer Seminar on Money, Finance, and Public Policy on June 20th, 2025.

  Download Working Paper No. 1084 PDF (222.28 KB)
• Policy Note No. 2025/4
  May 22, 2025

  Ratings Agencies Downgrade the Dollar’s Exorbitant Privilege

  L. Randall Wray
  Abstract

  They are at it again. Moody’s has finally joined the other two ratings agencies in downgrading US government debt. Standard & Poor’s downgrade was first in 2011[1], while Fitch waited…more

  Download Policy Note 2025/4 PDF (584.34 KB)
• Working Paper No. 1076
  February 07, 2025

  The Rise of the Modern Monetary System

  L. Randall Wray
  Abstract

  This working paper integrates the credit money approach (associated with Post Keynesian endogenous money theory) with the state money approach (associated with Modern Money Theory) by drawing on Wray’s 1990…more

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• Working Paper No. 1071
  December 10, 2024

  Tilting at Windmills

  James K. Galbraith and Pavlina R. Tcherneva
  Abstract

  Originally issued as EDI Working Paper No. 14, May 2023 The Central Bank of the United States, the Federal Reserve, has a dual mandate to maintain both full employment and…more

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• Working Paper No. 1070
  December 10, 2024

  Notes on Money as Technology

  Raúl A. Carrillo
  Abstract

  Originally issued as EDI Working Paper No. 20, June 2024 Scholars and affiliates of the Levy Economics Institute have long demonstrated a granular understanding of the “operations” of money, which…more

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• Working Paper No. 1068
  December 10, 2024

  Monetary Power and Vulnerability to Sovereign Debt Crises

  Karina Lima
  Abstract

  Originally issued as EDI Working Paper No. 17, March 2024 This paper challenges the prevailing view in the sovereign debt literature by arguing that sovereign debt markets, in many respects,…more

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• Working Paper No. 1067
  December 06, 2024

  Revisiting the Foreign Debt Problem and the “External Constraint” in the Periphery

  Ndongo Samba Sylla
  Abstract

  Originally issued as EDI Working Paper No. 16, March 2024 Most debates and policy proposals about Global South countries’ external debt problem take for granted the view that it is…more

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• Working Paper No. 1065
  December 06, 2024

  Resource Constraints and Economic Policy

  Yeva Nersisyan
  Abstract

  Originally issued as EDI Working Paper No. 09, 2023 This paper explains the MMT approach for evaluating the affordability of spending programs, contrasting it with the mainstream approach. Using the…more

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• Working Paper No. 1064
  December 06, 2024

  Seismic Shifts in Economic Theory and Policy from the Bernanke Doctrine to Modern Money Theory

  Pavlina R. Tcherneva and Éric Tymoigne
  Abstract

  Originally issued as EDI Working Paper No. 08, 2022  This paper evaluates the relationship between monetary and fiscal policy and the relative effectiveness of macroeconomic stabilization through the lens of…more

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• Working Paper No. 1062
  December 03, 2024

  The Value of Money

  L. Randall Wray
  Abstract

  This paper examines heterodox theories of the determinants of the value of money. Orthodox approaches that tie money’s value to relative scarcity of money or to the price level are…more

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• Working Paper No. 1061
  November 26, 2024

  Modern Money Theory on Fiscal and Monetary Policies

  Éric Tymoigne
  Abstract

  Originally issued as EDI Working Paper No. 04, 2022 Drumetz and Pfister make several claims about the inadequacy and fallacies of Modern Money Theory (MMT) and conclude that MMT is…more

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• Working Paper No. 1060
  November 26, 2024

  The Job Guarantee

  Pavlina R. Tcherneva
  Abstract

  Originally issued as EDI Working Paper No. 02, 2022 Orthodox economic theory presents the policy maker with an impossible choice: eradicate unemployment at the cost of undesirable inflation or keep…more

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• Working Paper No. 1058
  November 20, 2024

  The Origins of the Platonic Approach to Monetary Systems

  Éric Tymoigne
  Abstract

  A monetary approach that combines Chartalism, Nominalism, and Command origins of monetary systems is often deemed to have emerged only recently, while the Aristotelian approach (Commodity, Metallism, and Market origins…more

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• Strategic Analysis
  November 05, 2024

  Economic Challenges of the New U.S. Administration

  Dimitri B. Papadimitriou, Nikolaos Rodousakis, Giuliano Toshiro Yajima, and Gennaro Zezza
  Abstract

  On the eve of the 2024 US presidential election, the authors share their latest macroeconomic projections using the Levy Institute’s tailored stock-flow consistent model and evaluate two alternative policy scenarios, depending upon the next occupant of the White House: (1) a significant increase in import tariffs and decrease in the marginal tax rate, and (2) a substantial increase in government expenditure paired with an increase in the marginal tax rate.

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• Policy Note No. 2024/1
  October 11, 2024

  The Boy Who Cried Wolf About Government Debt

  Yeva Nersisyan and L. Randall Wray
  Abstract

  In a New York Times editorial, David Leonhardt recounts Aesop’s apocryphal story about the boy and the wolf, warning that while deficit hawks have so far been wrong, the growing government debt will eventually bite. He reports the economic plans of both presidential candidates would add to the debt that will soon exceed GDP and grow to 130 percent of annual output under a President Harris, or 140 percent with a Trump presidency.

  The story of the boy and the wolf was a fable, although it was within the realm of possibility. The fable of the debt wolf is not. While there are real world wolves—Leonhardt mentions climate catastrophe and autocratic leaders, and the authors would add rising inequality and the concentration of economic and political power in the hands of billionaires—authors Yeva Nersisyan and L. Randall Wray assert, federal debt is not one of them.

  Download Policy Note 2024/1 PDF (368.08 KB)
• Working Paper No. 1057
  October 09, 2024

  Rise and Fall of Mexican Super Peso: Heterodox Perspective versus Orthodoxy

  Laura Lisset Montiel-Orozco
  Abstract

  This working paper contrasts the neo-Keynesian and post-Keynesian theories of monetary policy for an open economy, highlighting the irrelevance of the orthodox theory and the explanatory capacity of heterodoxy for…more

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• Working Paper No. 1055
  September 18, 2024

  The Relation Between Budget Deficits and Growth: Complicated but Clear

  L. Randall Wray and Eric Lin
  Abstract

  This paper looks at the relationship between government budget deficits and the growth rate of GDP. While orthodox economic theory offers several reasons to believe that growing deficits might be…more

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• Working Paper No. 1052
  June 05, 2024

  Exchange-Rate Stability Causes Deterioration of the Productive Sphere and Destabilizes Developing Economies

  Arturo Huerta G.
  Abstract

  For Matías Vernengo and Esteban Pérez Caldentey (2020), the MMT literature overemphasizes the choice of the exchange rate regime and the relevance of a flexible exchange rate regime, as well…more

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• Working Paper No. 1035
  January 04, 2024

  The Swedish Monetary System from a Balance Sheet Perspective

  Dirk Ehnts and Jussi Ora
  Abstract

  In this paper, we discuss the balance sheet mechanics of the Swedish government. We examine spending, government bond purchases, and tax payments. As long as the Swedish central bank, which…more

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• Working Paper No. 1023
  July 14, 2023

  Climate Change and Fiscal Marksmanship

  Lekha S. Chakraborty, Amandeep Kaur, Ajay Narayan Jha, and Balamuraly B
  Abstract

  According to the theory of efficient markets, economic agents use all available information to form rational expectations. The rational expectations hypothesis asserts that information is scarce, the economic system generally…more

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• Working Paper No. 1015
  February 20, 2023

  CBDC Next-Level: A New Architecture for Financial “Super-Stability” 

  Biagio Bossone and Michael Haines
  Abstract

  Fractional reserve regimes generate fragile banking, and full reserve regimes (e.g., narrow banking) remove fragility at the cost of suppressing the role of banks as lenders. A Central Bank Digital…more

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• One-Pager
  December 07, 2022

  The Causes of Pandemic Inflation

  L. Randall Wray
  Abstract

  While the trigger for the Covid recession was unusual—a collapse of the supply side that produced a drop in demand—the inflation the US economy is now facing is not atypical,…more

  Download One-Pager No. 70 PDF (128.13 KB)