Publications

600 publications found, searching for 'Monetary Policy and Financial Structure '

• Working Paper No. 1105
  January 22, 2026

  OPENSIMPLEST: The Smallest SFC Open Economy Model

  Francesco Zezza
  Abstract

  This article introduces OPENSIMPLEST, a highly parsimonious stock-flow consistent (SFC) model of an open economy. The model is designed as a pedagogical and analytical benchmark that preserves the core mechanisms…more

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• Working Paper No. 1103
  January 08, 2026

  Legal Tender, Debt, and the Institutional Settlement of Monetary Obligations in English Law

  Neil Wilson, Richard Tye, and Andrew Berkeley
  Abstract

  This paper challenges the widespread public and institutional misconception that legal tender laws in English law compel creditors to accept payment in a specific form. We argue that legal tender…more

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• Policy Note No. 2025/10
  December 22, 2025

  The Fed Lowered Rates Again. Is It Really a Surprise?

  Yeva Nersisyan and L. Randall Wray
  Abstract

  The whole world was watching on December 10, 2025 to finally find out what the Fed was going to do. Big money bets were placed—would the Fed leave rates unchanged…more

• Working Paper No. 1098
  October 17, 2025

  Creative Destruction Meets Financial Instability: Toward a New Synthesis

  Leonardo Burlamaqui
  Abstract

  This paper reconstructs Joseph Schumpeter’s major works to propose a coherent new departure point for analyzing economic and social change. I argue that Capitalism, Socialism and Democracy (1942) (CSD) marks…more

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• Working Paper No. 1094
  October 01, 2025

  Lebanon’s Eventual Transition to a Floating Exchange Rate System

  Roudy Sassine
  Abstract

  Lebanon’s longstanding fixed exchange rate regime collapsed in the wake of the country’s 2019 financial crisis. This paper examines the underlying monetary factors that contributed to the collapse, offering a…more

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• Policy Note No. 2025/7
  September 19, 2025

  No, the Fed Is NOT Independent—It Is a Creature of Congress

  Yeva Nersisyan and L. Randall Wray
  Abstract

  In response to President Trump’s attack on the Federal Reserve, the natural critics of misguided monetary policy find themselves defending the Fed and the notion that the Fed is—and must…more

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• Working Paper No. 1091
  September 04, 2025

  Banking on Payments?

  Jörg Bibow
  Abstract

  For the past hundred years or more, payments have been primarily associated with banking, and banking as we know it today—being the result of many centuries of evolution—features a bundling…more

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• Working Paper No. 1087
  July 30, 2025

  A Model of External Debt Sustainability and Monetary Hierarchy

  Nicolás M. Burotto
  Abstract

  The author develops a dynamic macroeconomic model of a small open economy to identify two key vulnerabilities that prevent emerging markets from fully integrating into global markets: high financial integration…more

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• Working Paper No. 1086
  July 29, 2025

  Financial Fragility Without Financial Instability

  Leonardo Burlamaqui
  Abstract

  Between the late 1990s and mid-2000s, China’s banking sector underwent a profound yet largely underappreciated transformation—arguably one of the most consequential episodes of financial restructuring in recent economic history. This…more

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• Working Paper No. 1085
  July 17, 2025

  Fiscal Deficit and Term Structure of Interest Rate Links on Corporate Investment

  Lekha S. Chakraborty and C. Prasanth
  Abstract

  Using high-frequency macro data from a financially deregulated regime, this paper examines whether there is any evidence of financial crowding out in India. The macroeconomic channel through which financial crowding…more

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• 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. 1082
  May 12, 2025

  Growth vs. Discipline: Italy’s Fiscal Dilemmas in a Stock-Flow Consistent Model

  Francesco Zezza and Gennaro Zezza
  Abstract

  This paper investigates the implications of the European Union’s revised fiscal governance framework for Italy, a country facing the dual challenge of high public debt and persistent economic stagnation. Using…more

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• Working Paper No. 1075
  January 23, 2025

  The High Cost of the Strong Peso and Its Temporary Nature: The Case of Mexico

  Arturo Huerta G.
  Abstract

  The article analyzes why exchange rate stability has been prioritized in Mexico and why the national currency has appreciated; which policies and factors have made this possible, the costs and…more

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• Working Paper No. 1072
  December 12, 2024

  Macro-Financial Models of Canadian Dollar Interest Rate Swap Yields

  Tanweer Akram and Khawaja Mamun
  Abstract

  This paper analyzes the dynamics of Canadian dollar–denominated (CAD) interest rate swap yields. It applies autoregressive distributive lag (ARDL) models, using monthly time series data, to estimate the effects of…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. 1069
  December 10, 2024

  Tax Credits Are Industrial Policy

  Chirag Lala
  Abstract

  Originally issued as EDI Working Paper No. 19, March 2024 The Inflation Reduction Act (IRA) is criticized for “derisking” private investment by increasing the gains to private firms. The derisking…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. 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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• 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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