Category Archives: Teaching models

Simple models of how the modern monetary system works

ABS revises labour force methodology – things are much worse than we thought

Yesterday, the Australian Bureau of Statistics released an extraordinary press notice – Statement from the Australian Statistician on the Labour Force estimates – which aimed to help everyone understand why the Labour Force data has been so weird lately. A … Read the rest of this entry »

Posted in Economics, Labour Force, Teaching models | 4 Comments

Macroeconomic textbooks ripe for composting

I have been travelling a lot today – train, car, plane, car – and in between speaking and other commitments so not much time to type some thoughts. Also a detective novel I am reading was quite interesting on the … Read the rest of this entry »

Posted in Economics, Teaching models | 16 Comments

Mainstream macroeconomics textbooks do not impart knowledge

I have spent most of today working on a Chapter for the upcoming macroeconomics textbook that I am writing with Randy Wray (UMKC). It is a difficult task getting the balance between the content and the pedagogy more or less … Read the rest of this entry »

Posted in Economics, Teaching models | 33 Comments

The full employment budget deficit condition

Many readers ask me to provide a Modern Monetary Theory (MMT) rule for sound fiscal management. I had done this often but apparently not concisely enough. It is important to understand what the limits on budget deficits are in term … Read the rest of this entry »

Posted in Debriefing 101, Economics, Teaching models | 103 Comments

What is the balanced-budget multiplier?

I have been working today on the modern monetary theory text-book that Randy Wray and I are planning to complete in the coming year (earlier than later hopefully). It just happens that I was up to a section on what … Read the rest of this entry »

Posted in Economics, Teaching models | 86 Comments

In austerity land, thinking about fiscal rules

I am now in Maastricht, The Netherlands where I have a regular position as visiting professor. It is like a second home to me. The University hosts CofFEE-Europe, which we started some years ago as a sibling of my research … Read the rest of this entry »

Posted in Economics, Eurozone, Teaching models | 98 Comments

Some neighbours arrive

The other day I introduced a simple model of how a monetary economy works. The model was centred on the payments of my business cards to elicit labour from the kids that live in my house. All the basic national … Read the rest of this entry »

Posted in Teaching models | 84 Comments

Barnaby, better to walk before we run

Today I have been thinking about the macroeconomics textbook that Randy Wray and I are writing at present. We hope to complete it in the coming year. I also get many E-mails from readers expressing confusion with some of the … Read the rest of this entry »

Posted in Debriefing 101, Teaching models | 82 Comments

A simple business card economy

Some readers have asked me to provide a simplified explanation of how the modern monetary economy works which is devoid of all the jargon that economists hide within. As part of another earlier blog, I did present a simple budget … Read the rest of this entry »

Posted in Debriefing 101, Teaching models | 20 Comments