Introduction to Modern Monetary Theory

Maurice Höfgen
Summer Academy for Pluralist Economics, 2021
Niveau: débutant
Perspective: Autre
Sujet: Macroéconomie, Monnaie & dette
Format: Description du cours/syllabus

This workshop was originally taught at the Summer Academy for Pluralist Economics 2021
Instructor: Maurice Höfgen

Module description

Course form Credit Duration Language
Workshop (online) 4 ECTS 1 week block course English

Qualification goals / Outcome:

After completing the module, participants should have gained a basic understanding of the economic school of thought referred to as "Modern Monetary Theory" and should be able to analyze the monetary processes at play in the economy and evaluate fiscal and monetary policy decisions from an MMT-perspective. Moreover, participants should be able to apply the methods of macroeconomic accounting.

Course content:

  • Understanding the monetary system and the nature of money
  • Unemployment from an MMT perspective
  • Inflation from an MMT perspective
  • Fiscal Policy from an MMT perspective
  • Monetary Policy from an MMT perspective

Teaching methods:

Workshop - Mixture of new content as lecture, discussion of lecture and prepared reading. Interaction and working tasks during the session. Students develop a final presentation for the whole summer academy.

Kind of module:

This module con either be accomplished in a compulsory or elective module, depending on the degree programme. In every degree programs it might be suited for elective or transdisciplinary modules. In degree programmes in economics or with parts in economics, it might be suited for advanced courses, too.

Requirements for participation:

This module has an advanced bachelor level. Participants should be familiar with academic methods as well as scientific reasoning. Moreover, good English skills are required.

Requirements for granting credit points

contact times self-study exam preparation marking
30 h 30 h 60 h yes

Assessment pattern

  • Presentation on a pass/fail basis
  • Written exam, open questions

Module coordinator

The module is carried out by the Netzwerk Plurale Ökonomik e.V. Responsible staff:
Janina Urban, M.Sc. and Anita Lehner, M.A.

Module teaching staff

Maurice Höfgen, Master of Science in Economics and Strategy in Emerging Markets, Research Associate at the German Parliament and Author of "Mythos Geldknappheit: Modern Monetary Theory oder warum es am Geld nicht scheitern muss“.

Reading List

Session 1: Understanding government finances and the monetary system


  • Wray, L. R. (2014). From the state theory of money to modern money theory: An alternative to economic orthodoxy. Levy Economics Institute, Working Papers Series, Working Paper No. 792.
  • Bell, S. (2001). The role of the state and the hierarchy of money. Cambridge Journal of Economics, 25(2), 149-163.
  • Innes, M. (1914). The credit theory of money. Banking Law Journal, 31, 151-168.


  • Bell, S. (2000). Do taxes and bonds finance government spending? Journal of economic issues, 34(3), 603-620.
  • Forstater, M. (2005). Taxation and primitive accumulation: the case of colonial Africa. Research in Political Economy, 22(04), 51-64.
  • Tymoigne, E. (2014). Modern Money Theory, and Interrelations Between the Treasury and Central Bank: The Case of the United States. Journal of Economic Issues, 48(3), 641-662.

Session 2: Unemployment and Inflation


  • Fullwiler, S., Grey, R., & Tankus, N. (2019). An MMT response on what causes inflation. Financial Times.
  • Mosler, W. (1997). Full employment and price stability. Journal of Post Keynesian Economics, 20(2), 167-182.
  • Bill Mitchell (2010) Modern monetary theory and inflation – PART 1


  • Tcherneva, P. R. (2002). Monopoly money: The state as a price setter. Oeconomicus, Winter, 30-52.
  • Mitchell, W. (2009) Zimbabwe for hyperventilators 101. Bill Mitchell - Modern Monetary Theory

Session 3: Fiscal, Monetary and Trade Policy


  • Ehnts, D. H., & Höfgen, M. (2019). Modern monetary theory: a European perspective. real-world economics review, 75.
  • Forstater, M., & Mosler, W. (2005). The natural rate of interest is zero. Journal of economic issues, 39(2), 535-542.
  • Wray, L. R. (2019). MMT and Two Paths to Big Deficits. Challenge, 62(6), 398-415.


  • Tymoigne, E. (2008). On the optimality of a permanent zero central-bank rate: Why were central banks created. Paper presented at the 12th Conference of the Research Network Macroeconomics and Macroeconomic Policies.
  • Kelton, S. (2011). Limitations of the government budget constraint: Users vs. issuers of the currency. Panoeconomicus, 58(1), 57-66.
  • Grey, R. (2020). Administering Money: Coinage, Debt Crises, and the Future of Fiscal Policy. Debt Crises, and the Future of Fiscal Policy (February 11, 2020).
  • Grey, R., & Tankus, N. (2017). Corporate Taxation in a Modern Monetary Economy: Legal History, Theory, Prospects. Global Institute for Sustainable Prosperity. Working paper no. 118

Session 4: Green New Deal, Job Guarantee and other policy proposals


  • Nersisyan, Y., & Wray, L. R. (2019). How to pay for the Green New Deal. Levy Economics Institute, Working Papers Series, 931.
  • Ehnts, D. H., & Höfgen, M. (2019). The Job Guarantee: Full Employment, Price Stability and Social Progress. Society Register, 3(2), 49-65.


  • Murray, M., & Forstater, M. (2013). Employment guarantee schemes: job creation and policy in developing countries and emerging markets: Springer.
  • Tcherneva, P. R. (2018). The Job Guarantee: Design, Jobs, and Implementation.
  • Cruz-Hidalgo, E., Ehnts, D. H., & Tcherneva, P. R. (2019). Completing the Euro: The Euro Treasury and the Job Guarantee. REC, 100.
  • Levey, S. (2019). Modern Money and the War Treasury. Global Institute for Sustainable Prosperity. Working Paper no. 123.


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Nous soutenir

Ce projet est le fruit du travail des membres du réseau international pour le pluralisme en économie, dans la sphère germanophone (Netzwerk Plurale Ökonomik e.V.) et dans la sphère francophone (Rethinking Economics Switzerland / Rethinking Economics Belgium / PEPS-Économie France). Nous sommes fortement attachés à notre indépendance et à notre diversité et vos dons permettent de le rester !