L. Randall Wray

Curso de Randall Wray

Curso de Randall Wray Aula 1 en Instituto de Economía da Unicamp

LECTURE 1 – AN INTRODUCTION TO MODERN MONEY THEORY (Institute of Economics, Campinas, Unicamp, August 7th, Minsk2018) In this lecture, that is the first one in the Course of Modern Money Theory, Professor L. Randall Wray presents an overview of this theory and deals with the following topics: 1) the origins and nature of Money; 2) the role of the State; 3) the role of taxes; 4) sovereign currency and 5) can government run out of Money? According to the answers he gives to these questions, Professor Wray concludes that the only economic constraint government faces are full employment of resources and inflation. All the other constraints are political. Bibliografia: Wray, L. Trabalho e Moeda Hoje: a chave para o pleno emprego e a estabilidade dos preços. (Understanding Modern Money: the key to full employment and price stability). Editora UFRJ/Contraponto, 2003. Presentación PPT: https://goo.gl/aiSTtH Imagens: Alexandre Motta

Curso de Randall Wray Aula 2

LECTURE 2 – ENDOGENOUS X EXOGENOUS MONEY (Institute of Economics, Campinas, Unicamp, August 8th, 2018) In this lecture, that is the second of the Course of Modern Money Theory, Professor L. Randall Wray discusses the endogenous Money approach, that is part of Modern Money Theory, and explains how it opposes to the idea that the supply of money is controlled by Central Banks (exogenous Money approach). In order to do that, he goes in detail about the creation of Money and the actual role of the Governments, of the banking systems and of the Central Banks in this process. Bibliografia: Sheard, P. Repeat After Me: Banks Cannot And Do Not "Lend Out" Reserves. Standard & Poor, Credit Market Services, Global Economics and Research. New York, 2013. Desai, M. Endogenous and Exogenous Money. In: Eatwell J., Milgate M., Newman P. (eds) Money – The New Palgrave. Palgrave Macmillan, London, 1989. Bell, S. The role of the state and the hierarchy of money. Cambridge Journal of Economics, v. 25. Mar, 2001. Presentación PPT: https://goo.gl/w8ruh6 Imagens: Alexandre Motta

Curso de Randall Wray Aula 3

LECTURE 3 – MODERN MONEY THEORY (Institute of Economics, Campinas, Unicamp, August 9th, 2018) In this lecture, that is the third of the Course of Modern Money Theory, Professor L. Randall Wray goes in detail into Modern Money Theory, and deals with the main criticisms to this approach. His starting point is the idea of Tax Driven Money, meaning that government spends first, and then collects taxes. Given that, he goes in detail about monetary and fiscal policy and how the Treasuries and Central Banks operate in modern economies. Taking that, he faces the question: which are the constraints to the functioning of modern economies? Bibliografia: Goodhart, C. The two concepts of money: implications for the analysis of optimal currency areas. European Journal of Political Economy, v. 14. Aug, 1998. Wray, L. Modern Money Theory: a primer on macroeconomics for sovereign monetary systems. Palgrave Macmillan, London, 2012. (Second Revised Edition 2015). Tymoigne, E. ; Wray, L. Modern Money Theory: a reply to critics. Working Paper, n. 778. Levy Economics Institute. Nov, 2013. Presentación PPT: https://goo.gl/YjJ6xf Imagens: Alexandre Motta

Curso de Randall Wray Aula 4

LECTURE 4 – FULL EMPLOYMENT THROUGH THE JOB GUARANTEE (Institute of Economics, Campinas, Unicamp, August 13th , 2018) In this lecture, that is the fourth of the Course of Modern Money Theory, Professor L. Randall Wray deals with the issue of unemployment. He discusses its causes, based on Minsky’s original reflections on this subject, and criticizes the traditional Keynesian approach. The Job Guarantee policy, a direct approach to deal with unemployment, is fully assessed, and Professor Wray presents in detail the recent proposals for USA presented by a group of researchers at the Levy Economics Institute. Bibliografia: Minsky, H. Effects of Shifts of Aggregate Demand Upon Income Distribution.  American Journal of Agricultural Economic, v. 50. 1968. ( http://digitalcommons.bard.edu/hm_arc… ) Wray, L. et a. Public Service Employment: a path to full employment. Research Project Reports. Levy Economics Institute. April, 2018. Presentación PPT: https://goo.gl/Rq5MLu Imagens: Alexandre Motta

Curso de Randall Wray Aula 5

LECTURE 5 – MINSKY’s MODERN MONEY THEORY (MMT) AND FUNCTIONAL FINANCE (Institute of Economics, Campinas, Unicamp, August 14th, 2018) In the fifth section of the Modern Money Theory Course, Professor L. Randall Wray goes back and tracks the Minskyan routes of MMT and his connections with Abba Lerner’s principles of Functional Finance. Coming from this perspective, the main argument of MMT is that fiscal policy primary target might be full employment without high inflation. And also argues why a typical general aggregate demand stimulus does not generate full employment and leads to effects ranging from increasing financial fragility, inflation and inequality. Bibliografia: Lerner, A. 1943. Functional Finance and the Federal Debt. Social Research, v. 10. 1943. Wray, L. Functional Finance: A Comparison of the Evolution of the Positions of Hyman Minsky and Abba Lerner, Working Paper, n. 900. Levy Economics Institute. Jan, 2018. Presentación PPT: https://goo.gl/AA8t95 Imagens: Alexandre Motta

Curso de Randall Wray Aula 6

LECTURE 6 – MINSKY AND FINANCIAL KEYNESIANISM (Institute of Economics, Campinas, Unicamp, August 155h, 2018) In this lecture, the sixth oh the Modern Money Theory Course, Professor L. Randall Wray goes back to Minsky’s early contributions, including his concerns with poverty and unemployment and his critique to the traditional Keynesian approach. The Financial Instability Hypothesis is presented as Minsky’s main critique of financial capitalism. Professor Wray also discusses Minsky’s stages approach of capitalist economies, and finally points out some policies that, according to this view, could help promote stability. Bibliografia: Minsky, H. The Financial-Instability Hypothesis: capitalist processes and the Behavior of the Economy. 1982. Hyman P. Minsky Archive.  (http://digitalcommons.bard.edu/hm_arc…) Papadimitriou, D. ; Wray, L. Minsky's Analysis of Financial Capitalism. Working Paper, n. 275. Levy Economics Institute. July, 1999. Presentación PPT: https://goo.gl/4hR2V7 Imagens: Alexandre Motta

Curso de Randall Wray Aula 7:

LECTURE 7 – THE RISE OF MONEY MANAGER CAPITALISM AND THE GLOBAL FINANCIAL CRISES (Institute of Economics, Campinas, Unicamp, August 165h, 2018) In this lecture, the last one of the Modern Money Theory Course, Professor L. Randall Wray discusses the main characteristics of contemporary Money Manager Capitalism and the road that lead to the 2008 financial crisis. He also analyses the Euro Crisis from the perspective of Modern Money Theory, stating that the main problem is that member states abandoned sovereign currency. At the end of the lecture some policy options are assessed. Bibliografia: Minsky, H. Uncertainty and the Institutional Structure of Capitalist Economies. Working Paper, n. 155. Levy Economics Institute, 1996. Wray, L. Global Financial Crisis: a Minskyan interpretation of the causes, the Fed’s bailout, and the future. Working Paper, n. 711. Levy Economics Institute. March, 2012.