Wagdy Samir work in progress. Addition of Bill Mitchell's draft textbook  chapter1   See also  The value of everything book IM

Wagdy Samir work in progress. Addition of Bill Mitchell's draft textbook chapter1  See also The value of everything book IM

WIP SD representation of Steve Keen's MMT Minsky Model of an MMT fiat credit economy August 2020 patreon
WIP SD representation of Steve Keen's MMT Minsky Model of an MMT fiat credit economy August 2020 patreon
Summary of Part B Ch 9 and 10 of Mitchell Wray and Watts Textbook see  IM-164967  for book overview
Summary of Part B Ch 9 and 10 of Mitchell Wray and Watts Textbook see IM-164967 for book overview
WIP based on Bill mitchell's blogs Sectoral balances are relationships among money flows during an accounting period. Where we perceive accumulations of past imbalances to be accrued is another matter....
WIP based on Bill mitchell's blogs
Sectoral balances are relationships among money flows during an accounting period. Where we perceive accumulations of past imbalances to be accrued is another matter....
Summary of Pavlina Tcherneva's 2019 Challenge  article  (paywalled)  added to  IM-173064  Ch 19 Full employment policy of Macroeconomics textbook
Summary of Pavlina Tcherneva's 2019 Challenge article (paywalled)  added to IM-173064 Ch 19 Full employment policy of Macroeconomics textbook
WIP  based on Where profits come from  paper  , Nathan Tankus  blog  and other historical sources
WIP  based on Where profits come from paper , Nathan Tankus blog and other historical sources
This is a simplification of the Austerity vs Prosperity model in the hope that it will be easier to understand. @ LinkedIn ,  Twitter ,  YouTube
This is a simplification of the Austerity vs Prosperity model in the hope that it will be easier to understand.
Spending by
the government   creates   its own 'financial resource' as the process of
crediting an account in the private sector takes place. This may sound like
nonsense, but in fact it is 'monetary reality'. This premise is supported by Bell
(1998; 2000) and Wray (1998a) who argue that the Treasur
Spending by the government creates its own 'financial resource' as the process of crediting an account in the private sector takes place. This may sound like nonsense, but in fact it is 'monetary reality'. This premise is supported by Bell (1998; 2000) and Wray (1998a) who argue that the Treasury does not need to collect or borrow funds in order to spend, but crates new funds as it spends.

Perhaps the following thought experiment  helps to understand how this is possible.  

If you imagine two drawers, each representing an account. The first drawer contains 100 gold coins and the second is empty. Also imagine that there are no other gold coins available at this time. Let's call the first drawer account A and the second account B. Now if you want to transfer 30 gold coins from account A to account B, you would actually first have to take the coins out of drawer A and then place them into drawer B. Account A will then necessarily have 30 coins less in it. Now imagine accounts A and B are held in a computer as electronic money. Instead of 100 gold coins, account A only contains the computer generated number '100'  and account B shows '0'. To get account B to show a balance of '30', it would now simple be necessary to change the '0' to '30' on the computer. The need to raid account A and to take '30' from the number '100' before you could credit  account B does not exist. Money is created as it is entered in B's account irrespective of whether A's account is debited before or after this process or not at
  This model
shows the basic functioning and dynamics of a 'modern monetary system'.  The non-government
sectors, consisting of the private and foreign sectors initial y starts with
zero currency units. It is important to realize that  after creating a new currency the government
must first spend cu

This model shows the basic functioning and dynamics of a 'modern monetary system'.

The non-government sectors, consisting of the private and foreign sectors initial y starts with zero currency units. It is important to realize that  after creating a new currency the government must first spend currency units into the economy before they can be used: without currency units the private sector could not even pay taxes! A government that has its own freely floating currency can create a much money as it wants. It does not need tax receipts to finance its spending, and any money it spends into the economy above that collected in taxes represents income for the private sector. The model show that the government initially created 9 trillion money units, but spent only six trillion into the economy. The six trillion showed up as a government deficit, but also as wealth in the non-government sector.

Since the government can create as many money units as it wishes and transfer  them  to the private sector  to ensure an adequate level of demand in the in the economy,  austerity is unnecessary: money is available, though real resource may be scarce. This also shows that the government can contribute actively towards the creation of prosperity. 

Please note that this model was originally created by Gene Bellinger, IM 3206, from which this version was  cloned.


Based on Ch 7.3 of Mitchell Wray and Watts Textbook see  IM-164967  for overview. See  IM-165546  for a conversion to a continuous time stock flow version of this simple example
Based on Ch 7.3 of Mitchell Wray and Watts Textbook see IM-164967 for overview. See IM-165546 for a conversion to a continuous time stock flow version of this simple example
WIP based on Bill mitchell's blogs.  Sectoral balances are relationships among money flows during an accounting period. Where we perceive accumulations of past imbalances to be accrued is another matter....
WIP based on Bill mitchell's blogs. 
Sectoral balances are relationships among money flows during an accounting period. Where we perceive accumulations of past imbalances to be accrued is another matter....
Based on Ch 7.3 of Mitchell Wray and Watts Textbook see  IM-164967  for overview.  IM-165415  Example converted to a continuous time dynamic model using stocks and flows
Based on Ch 7.3 of Mitchell Wray and Watts Textbook see IM-164967 for overview. IM-165415 Example converted to a continuous time dynamic model using stocks and flows
WIP replication of Khalid Saeed's draft paper presented by the Economics chapter of the SD Society in Sept 2019  youtube video
WIP replication of Khalid Saeed's draft paper presented by the Economics chapter of the SD Society in Sept 2019 youtube video
Graph representation of Ch3 of their 2007 Monetary Economics book, based on Alvarez and Ehnts 2015  paper  The roads not taken. Also see more complex WIP to successively split sectors at  IM-185550  . See also  essence of MMT IM  for simpler intro
Graph representation of Ch3 of their 2007 Monetary Economics book, based on Alvarez and Ehnts 2015 paper The roads not taken. Also see more complex WIP to successively split sectors at IM-185550 . See also essence of MMT IM for simpler intro
Summary of Ch 19 of Mitchell Wray and Watts Textbook see  IM-164967  for book overview
Summary of Ch 19 of Mitchell Wray and Watts Textbook see IM-164967 for book overview
Summary of Ch1 of Mitchell Wray and Watts Textbook see  IM-164967  for overview
Summary of Ch1 of Mitchell Wray and Watts Textbook see IM-164967 for overview
WIP SD representation of Ch11 of their 2007 Monetary Economics book, as suggested by Adam K. Plan is to do a top down simple money flow SFC mmt model and successively split sectors. See also  essence of MMT IM  and  simpler version Ch3 IM
WIP SD representation of Ch11 of their 2007 Monetary Economics book, as suggested by Adam K. Plan is to do a top down simple money flow SFC mmt model and successively split sectors. See also essence of MMT IM and simpler version Ch3 IM
Summary of Ch 14 of Mitchell Wray and Watts Textbook see  IM-164967  for book overview
Summary of Ch 14 of Mitchell Wray and Watts Textbook see IM-164967 for book overview
From  billy blog  Japan entries  and Ch2 of Mitchell Wray and Watts Textbook see  IM-164967  for book overview
From  billy blog Japan entries and Ch2 of Mitchell Wray and Watts Textbook see IM-164967 for book overview
Modern
Monetary theory (MMT) has shown how modern monetary systems actually work. It
has shown  that governments that issue
their own currency, such as the US, can never run out of money or be forced to
default on debt issued in their own currency. It has also demonstrated that
government spending t
Modern Monetary theory (MMT) has shown how modern monetary systems actually work. It has shown  that governments that issue their own currency, such as the US, can never run out of money or be forced to default on debt issued in their own currency. It has also demonstrated that government spending to stimulate the economy is logical and that the resulting deficit is irrelevant - the government always has the monetary means to eliminate it. This directly contradicts neoliberal doctrine that wants to limit government spending and posits that deficits destabilize the economy. Neoliberalism often constitutes a 'worldview' and 'personal identity'. Those who hold such strong beliefs cannot be persuaded to abandon them using rational arguments and facts - psychological reasons usually impede it as research has shown. The worldwide dominance of the doctrine, vested interests and psychologically grounded opposition suffocate MMT and rational arguments showing its superiority are seemingly of no avail. 

Summary of Ch2 of Mitchell Wray and Watts Textbook see  IM-164967  for overview
Summary of Ch2 of Mitchell Wray and Watts Textbook see IM-164967 for overview
Partial exposition of Samuelson's Accelerator Model to conform with the Simple Model 7.3 in the Macroeconomics Book, based on MIT D memo D-1761 by Low and Mass 1973  See also more complete version  IM-177550
Partial exposition of Samuelson's Accelerator Model to conform with the Simple Model 7.3 in the Macroeconomics Book, based on MIT D memo D-1761 by Low and Mass 1973  See also more complete version IM-177550