This is a simplification of the Austerity vs Prosperity model in the hope that it will be easier to understand.

WIP replication of Khalid Saeed's draft paper presented by the Economics chapter of the SD Society in Sept 2019 youtube video

Launch page for Macroeconomics Textbook 2019 by Mitchell, Wray and Watts. There is also a book companion site

From Bill Mitchell and Warren Mosler December2018 billy blog entry  and mosler's MMT white paper (google docs) 2019. Some highly aggregated stocks and flows and boundaries introduced.

Overview of Ch 26 of Mitchell Wray and Watts Textbook see IM-164967 for book overview

Summary of Ch 14 of Mitchell Wray and Watts Textbook see IM-164967 for book overview

Summary of Ch 12 of Mitchell Wray and Watts Textbook see IM-164967 for book overview. Compare with SD CLD IM-169071

Summary of Ch 21 of Mitchell Wray and Watts Textbook see IM-164967 for book overview

Summary of Ch 23 of Mitchell Wray and Watts Textbook see IM-164967 for book overview

Modern Monetary theory (MMT) has shown how modern monetary systems actually work. It has shown  that governments that issue their own currency, such as the US, can never run out of money or be forced to default on debt issued in their own currency. It has also demonstrated that government spending to stimulate the economy is logical and that the resulting deficit is irrelevant - the government always has the monetary means to eliminate it. This directly contradicts neoliberal doctrine that wants to limit government spending and posits that deficits destabilize the economy. Neoliberalism often constitutes a 'worldview' and 'personal identity'. Those who hold such strong beliefs cannot be persuaded to abandon them using rational arguments and facts - psychological reasons usually impede it as research has shown. The worldwide dominance of the doctrine, vested interests and psychologically grounded opposition suffocate MMT and rational arguments showing its superiority are seemingly of no avail. 

Summary of Ch 19 of Mitchell Wray and Watts Textbook see IM-164967 for book overview

WIP based on Bill mitchell's blogs

Summary of Ch 16 of Mitchell Wray and Watts Textbook see IM-164967 for book overview

This is a simplification of the Austerity vs Prosperity model in the hope that it will be easier to understand.

This model illustrates the current practice and consequences of government spending. Following the direction of the arrows from right to left the model shows the following sequence based on current practice:

Government Spending at a certain point leads to spending in excess of tax receipts. This will automatically lead to the issue of treasuries in the belief that the excess spending must be financed by borrowing (although the government has the capacity to create  money). This in turn will increase the national debt.

 Consequences that follow from this practice:

1) That national debt increases whenever the government spends in excess of tax receipts.

2) That the government must pay interest on the debt issued, which in turn increases and reinforces the need for government spending.

3) That the interest paid on treasuries will increase private sector income.

There is an alternative view, supported by Modern Monetary Theory, of how government spending can proceed. Please see this  Insight: 

https://insightmaker.com/insight/19954

WIP based on Bill mitchell's blogs

From  billy blog Japan entries and Ch2 of Mitchell Wray and Watts Textbook see IM-164967 for book overview

WIP Comparing Univeral Basic Income Guarantee with the Job Guarantee based on comparison articles

Summary of Ch 27 of Mitchell Wray and Watts Textbook see IM-164967 for book overview See IM-169093 for added dynamic evolutionary economics history

From Bill Mitchell and Warren Mosler December2018 billy blog entry  and mosler's MMT white paper (google docs) 2019. Some highly aggregated stocks and flows and boundaries introduced.See also Feb 2026 updated insight

Summary of Ch 6 of Mitchell Wray and Watts Textbook see IM-164967 for overview

Summary of Ch 11 of Mitchell Wray and Watts Textbook see IM-164967 for book overview

Summary of Ch5 of Mitchell Wray and Watts Textbook see IM-164967 for overview

WIP Cloned from WIP Africa Just Transition insight including (Fig 3.1 from Jorgen Randers book 2052 a Global Forecast for the Next Forty Years) with Fadhel Kaboub MMT Perspective to continue top down work on my slides of clds and macroeconomics