Abstract This paper discusses Modern Money Theory (MMT) from the perspective of a New Currency Theory (NCT) as represented by proponents of monetary reform. In the paradigmatic framework of currency teachings versus banking teachings, MMT, in contrast to its self-image as a chartal theory of money, represents banking theory much more than currency teaching. Its understanding of fractional reserve banking and monetary sovereignty is misleadingly incomplete. Thus, NCT’s analyses appear to be a more adequate foundation for modern sovereign money.Another economist pontificating about the monetary system based on "fractional reserve banking."
real-world economics review, issue no. 66
Modern Money Theory and New Currency Theory — A comparative discussion, including an assessment of their relevance to monetary reform
Joseph Huber, Martin Luther University, Germany
Joseph Huber, Martin Luther University, Germany
See also Warren Molser, AMI report
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