A Monetary Theory of Public Finance : The New Fiscal Orthodoxy: From Plummeting Deficits to Planned Fiscal Surpluses

Parguez, Alain

doi:10.1080/08911916.2002.11042882

Cited by 29 publications

(4 citation statements)

References 3 publications

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“…The role of the state as money creator is heavily emphasised by modern money theory (MMT) (Nersisyan/Wray 2016;Wray 2019). Not by chance, as Parguez (2002) among othersobserved, MMT extends the monetary circuit logic to government spending, taxation, and bond issuance. As a matter of fact, the circuit of state money is identically described by both neo-Chartalists (Tymoigne/ Wray 2013) and circuitists (Passarella Veronese/Sawyer 2014).…”

Section: Non-bank Sources Of Finance and Bank-loan Liabilities: The I...mentioning

confidence: 90%

Balance-sheet restructuring in Italy: an empirical analysis based on monetary circuit theory

Spanò¹

2024

European Journal of Economics and Economic Policies: Intervention

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Based on 25 years (1995–2019) of fully integrated sectoral data, this study builds on monetary circuit theory to examine the Italian experience of growing private debt followed by a long recession with balance-sheet restructuring. It is argued that this process cannot be identified as a typical balance-sheet recession. After the global financial crisis of 2007–2008, Italian firms increased financial sources from economic activities by retaining earnings, lowering wages, and disinvesting. Their deleverage, however, rested largely on the overall financial wealth reallocation that occurred after 2012, which was induced by monetary and fiscal policy, creating the conditions for households to increase net saving and to channel cumulated wealth from government securities and money balances towards equities.

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Section: Non-bank Sources Of Finance and Bank-loan Liabilities: The I...mentioning

confidence: 90%

Balance-sheet restructuring in Italy: an empirical analysis based on monetary circuit theory

Spanò¹

2024

European Journal of Economics and Economic Policies: Intervention

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“…The state monetary circuit starts with public spending and ends with taxes, meaning the state spends first and then collects. Therefore, the monopoly issuer of currency can only demand payment of taxes once the private agents have the means to pay the debt that circulates [12] (p. 104). From this perspective, public spending results in net financial assets for families and companies, which can be saved as benefits, whereas taxes destroy these assets [96,97].…”

Section: Discussion: Reversal Of the Development Sequencementioning

confidence: 99%

“…It is worth mentioning that the exploration of institutionalism to implement mechanisms for the right to employment has been advancing [2][3][4][5][6], and over the last 25 years Modern Money Theory has strengthened this institutionalist tradition. Matters such as demonstrating the necessary coordination of fiscal and monetary policies to ensure the system's operation, revealing the entry of money into the economy and the enlargement of the notion of endogenous money, or presenting a concept of money that contradicts the metallic approach to money in explaining the abstract value pattern for determining other prices, are innovative developments with direct implications for the full employment policy proposal, which we discuss here [7][8][9][10][11][12][13][14][15][16][17][18].…”

Section: Introductionmentioning

confidence: 99%

Decommodify the 2030 Agenda: Why and How to Finance What Is Not Profitable?

et al. 2023

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The 2030 Agenda serves as a guide for current economic policy. Despite this, the dominant political and economic discourse still relies on the market for success. Incentives are being developed to create business opportunities that align with the sustainable development goals. However, funding for these projects ultimately depends on their potential profitability. As a result, economic growth is seen as a necessary condition for achieving the 2030 Agenda. This approach leaves culture and the arts behind, as they are difficult to commodify. The artist job market highlights the tension between the democratic value of the arts and the values of the capitalist system. This challenge is seen in both the field of cultural economics and in discussions of culture’s role in meeting the 2030 Agenda’s sustainable development goals. To address this, the study proposes incorporating culture into a funding strategy not based on the private market by using the employer of last resort or job guarantee policy for future applications. This will redirect focus from the economic value of the arts to their value for human development, ultimately realizing the goals set by the 2030 Agenda.

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“…Moreover, these states can decide how much interest they pay to the holders of their bonds. (Bell 2000;Kelton 2011;Parguez 2002;Sardoni and Wray 2007;Wray 2012, 39-147. ) Because currency-issuing states are arguably not even balance-of-payments constrained (Mitchell and Fazi 2017, 202-214), the neochartalists maintain that all alleged financial constraints on the ability of these states to deficit spend are ultimately negligible.…”

Section: Neochartalism and Its Standard Nation-state-centric Interprementioning

confidence: 99%

A Cosmopolitan Reading of Modern Monetary Theory

Kotilainen

2021

Global Society

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The increasingly influential neochartalist Modern Monetary Theory (MMT) comes with a nation-state-centric framing of politics. The neochartalists argue that many alleged globalisation-related constraints on national economic policy are illusory or seriously overstated. In their view, monetarily sovereign states enjoy substantial autonomy over their fiscal and monetary policy decisions. The neochartalist diagnosis thus seems to undermine cosmopolitan calls for supranational forms of macroeconomic governance. However, this paper argues that if we pay serious attention to a range of subtler obstacles and strategic incentives that apply especially to small currency-issuing states, cosmopolitan aspirations remain well-motivated. Accordingly, the political implications of MMT are reexamined and a case for supranational exercise of monetary sovereignty is made. The paper goes on to demonstrate how the standard state-centric approach to currency privileges can prove counterproductive from the perspective of democratic governance. It is concluded that neochartalism and cosmopolitanism can fruitfully both correct and enrich each other.

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A Monetary Theory of Public Finance : The New Fiscal Orthodoxy: From Plummeting Deficits to Planned Fiscal Surpluses

Cited by 29 publications

References 3 publications

Balance-sheet restructuring in Italy: an empirical analysis based on monetary circuit theory

Balance-sheet restructuring in Italy: an empirical analysis based on monetary circuit theory

Decommodify the 2030 Agenda: Why and How to Finance What Is Not Profitable?

A Cosmopolitan Reading of Modern Monetary Theory

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