PULS
Foto: Matthias Friel
Course description
This course offers an introduction into monetary and fiscal policy in an open economy. The lecture focuses on scholarly research in Modern Monetary Theory (MMT) and real world Macroeconomics. It will examine theoretical and empirical research findings and recognize the importance of the monetary system in a capitalist economy.
Modern Monetary Theory (MMT) is distinguished from other approaches to macroeconomics because it places the monetary arrangements at the center of the analysis. MMT builds on the insights of many economists who have worked in the heterodox tradition. It therefore rejects the main precepts of the orthodox neoclassical approach to macroeconomics. However, because it places an emphasis on monetary arrangements within the capitalist economy, it adds new insights that were not previously available within the heterodox tradition.
Learning macroeconomics from an MMT perspective requires you to understand how money 'works' in the modern economy and to develop a conceptual structure for analyzing the economy as it actually exists. By placing government, as the currency issuer, at the center of the monetary system, the MMT approach immediately focuses on how a government spends, and how that spending influences those aforementioned macroeconomic aggregates that should be explained.
The aim of the lecture is to inform students on theoretical concepts and contemporary policy debates from a pluralist perspective. In this regard students will
The course will aim at understanding the relationship between government and the economy and how monetary and fiscal policy has evolved over the last decades. We will also consider critical voices of MMT as well as basic constraints of its policy conclusions in an international political economy context.
Main literature
Further literature will be announced on Moodle
Moodle Page: https://moodle2.uni-potsdam.de/course/view.php?id=25262
Moodle ID: MMT2021?
Requirements and grading
PART I: INTRODUCTION
PART II: CURRENCY, MONEY AND BANKING
PART III: UNEMPLOYMENT AND INFLATION: THEORY AND POLICY
PART IV: ECONOMIC POLICY IN AN OPEN ECONOMY
PART V: Contemporary Debates
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