I’ve updated the MR “recommended reading” page since I’ve added some notable pieces in the last few months. MR is obviously still a work in progress, but if you’re reading here you’ll probably think I sound like a madman if you don’t understand where I am coming from (there’s even a glossary!). These articles are all you need to get up to speed on MR. Numbers 1-7 cover all of the basics (#1 and #2 are repetitive), but if you’re feeling really aggressive you’ll definitely need to get around to 8-10 at some point. JKH’s pieces are particularly pertinent as they round out much of the operational realities where I have tended to oversimplify things in some of the other articles.
This is relatively heterodox since we’re basically rejecting the neoclassical (and even some heterodox views) macro approach which build models around either the Fed or the government in some fashion. MR starts with an understanding of the “plumbing” of the US monetary system by focusing on “inside money” or bank money based on the understanding the banks “rule the monetary roost”. As we say, the private sector is the backbone of the economy. Even when it comes to money issuance, the private sector (via banking) rules the system….
If you have questions please use the “Ask Cullen” section on the front page in the top toolbar. My only goal here is to help describe how the monetary system works so we can all formulate a better understanding of the world of money. I don’t have all the answers, but I think we’re getting closer (which is still pretty far from the finish line!)….
2. If You Learn Better by Reading in sections I Would Recommend Reading the Understanding The Modern Monetary System Paper in Parts:
- Part 1 – Introduction to Monetary Realism
- Part 2 – The Basic Operations of Fiat Monetary Systems
- Part 3 – The Lead Role of the Private Sector & “Inside Money”
- Parts 4 & 5 – A Fiat System Where Everyone Still Thinks We Have A Solvency Constraint & Understanding Modern Money
- Part 6 – Understanding Sectoral Balance Economics & S = I + (S-I)