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As argued by Ho (2014) the silver standard helped China because downward trending silver prices were producing mild inflation during the period 1929-31 and also helped to devalue exchange rate between gold and silver. First, as already discussed in this Economics.SE answer, mild inflation is important for an economy to avoid excessive unemployment due to ...


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If you want a quick overview from a skeptic you can try this from Reason magazine (I think it has public access). The article is mostly about politics and budget deficits, so search for 'MMT' and you will find several paragraphs near the end. As mentioned he is a skeptic and is criitcal of MMT; I suggest you read it first, then you'll be better able to ...


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For Modern Monetary Theory, this is a list of textbooks/books that I used in a primer. Macroeconomics, by William Mitchell, L. Randall Wray, and Martin Watts. Red Globe Press, 2019. ISBN: 978-1-137-61066-9 (Note: This is an undergraduate text, and is an overall heterodox approach to economics. Would need to be supplemented by more advanced materials for ...


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I didn't read it, but it seems like there is a deficit of textbooks on such subject. So, here is my suggestion, what I have found: 600-page long "Macroeconomics" by William Mitchell. William Mitchell is a Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at the University of Newcastle, NSW, Australia. He is ...


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In practice, central banks were not able to directly set the quantity of money in the system. Demand for banknotes is driven by retail demand and is seasonal, and if banknotes were not supplied, it might trigger a run by retail customers. More importantly, bank reserve requirements were calculated with a lag, and so there is no way for the banking system to ...


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You ask for sources on MMT and then sources on development of monetary theory. I don't know about the former (but I know there are some users here who are fans of MMT so hopefully they will hook you up with some good sources) but when it comes to the latter then a classic text that covers development of contemporary monetary theory is Walsh Monetary Theory ...


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You might be inspired by Joshua Angrist (MIT) who talks in this podcast about the craft of econometrics--how to use economic thinking and statistical methods to make sense of data and uncover causation. Using natural experiments is a good way to establish causation. A natural experiment is an empirical setting in which individuals are exposed to the ...


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This was due to the idea of liquidity trap, and due to Keynes thinking that in economic recession it is easy for an economy to slip into the liquidity trap. Liquidity trap is a situation where preference for holding cash becomes virtually infinite. Keynes (1936) in the 'General Theory' states: There is the possibility...that, after the rate of interest has ...


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Actually Costa Rica publishes inflation target. See the graph below provided by IMF where the inflation target is given by orange band (it is completely normal to target range rather than precise number): There are no proxies that can be just lifted from statistics that I know of but there are ways how to discover how central banks set monetary policy even ...


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To understand inflation or deflation you need a financial model like this for each economic unit: NW = K + FA - L Net worth equals the valuation of non-financial assets K plus financial assets FA minus liabilities L. Next you need a model for direct lending by wealthy households to the working class households and/or a model for wealthy households lending to ...


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The weak point of your logic is basing it on what happens to a \$20 bill. You can destroy such a bill, or the government can print such a bill, and it seems exceedingly likely that nothing measurable would happen to the aggregate economy. If we cannot measure the difference, we cannot say anything happened. (One can put forward theories about effects, but ...


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You have to make distinction between short-run and long-run. Short-run: In short-run money is not neutral, meaning that in short-run money and other nominal variables can affect real output. A one example why this is true are sticky wages. In presence of sticky wages wages (for example due to nominal contracts that take time to renegotiate) a fall in money ...


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