About

This is a blog that will explain how the modern monetary “fiat” system works.  We will endeavour to explain the mechanics of modern money.  This will not be based on theory but fact.  Make no mistake about it that this is an economics blog.

Whilst we will attempt to keep it simple for the average non-economist, a basic understanding of early high school algebra will be necessary.

This school of thought is known by many names, Modern Monetary Theory (MMT), Chartalism/Neochartalism, Modern Monetary Dynamics or as we have called it Modern Money Mechanics.  These are all essentially the same thing.  It is considered a post-Keynesian school of thought.

Once modern monetary theory is understood, the ramifications of the system can be explored. For example, many MMT proponents take the view that the national government which issues the currency as a monopolist has a charter to advance public purpose (welfare) at all times even if, in doing this, specific private interests are impeded. In general, the advancement of public interest will provide a sound basis for private benefit also. But at times this will not be the case. (Bill Mitchell)

Some of our blog posts will be our own work but most will be adaptation of others work on MMT.   Comments will be restricted on some of these posts (not all) and you will be directed to a link to the source document when a commenting facility is available.

We are in no way associated with the Modern Money Mechanics workbook released by Federal Reserve Bank of Chicago.

4 responses to “About

  1. Hey – are you guys purposely conflating your blog name with the popular web document describing the process of fractional reserve banking? (The document I’m talking about purports to be written & released by the Chicago Fed & is used by a wide community of conspiracy theorists decrying the fact that “money is debt”).

    My understanding of MMT has it at odds with those who describe the evils of the monetary system in Biblical terms.

    …just wondering if you knew of this cross-over in terms…

    (Google Modern Money Mechanics & you’ll get a hundred links which illustrate).

    IM

    • No we are not deliberately conflating our blog name with the that document.
      I am aware of that document. We will add a disclaimer to this page shortly.

      Modern Money Mechanics which describes how the modern fiat monetary system works in practice even though it is sometimes simplified to MMT. It is in fact Modern Money Mechanics.

  2. And brought back to the gold standard? Because I read modern money mechanics ( My bro is doing accounting and so he recommended it as an interesting read) and it seems to me that most of the money in the world is made up :/ it doesn’t have any tangable value to actual wealth of a nation. Also for every dollar in circulation, a certain percent of that is owed to the central bank ( a private company) as payment…

  3. I just found this blog! It looks cool. The tools to learn MMT seem very useful. Thanks for doing this

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