# MMT Models

These models and simulations have been tagged “MMT”.

Related tagsMacroeconomicsMitchell

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

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
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....
This is a simplification of the Austerity vs Prosperity model in the hope that it will be easier to understand.
Launch page for Macroeconomics Textbook 2019 by Mitchell, Wray and Watts. There is also a book companion site
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
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....
Summary of Ch 11 of Mitchell Wray and Watts Textbook see IM-164967 for book overview
WIP replication of Khalid Saeed's draft paper presented by the Economics chapter of the SD Society in Sept 2019 youtube video
Summary of Pavlina Tcherneva's 2019 Challenge article (paywalled)  added to IM-173064 Ch 19 Full employment policy of Macroeconomics textbook
WIP SD representation of Steve Keen's MMT Minsky Model of an MMT fiat credit economy August 2020 patreon
Summary of Ch 19 of Mitchell Wray and Watts Textbook see IM-164967 for book 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
This is a simplification of the Austerity vs Prosperity model in the hope that it will be easier to understand.
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
WIP  based on Where profits come from paper , Nathan Tankus blog and other historical sources
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 Ch 14 of Mitchell Wray and Watts Textbook see IM-164967 for book overview
Summary of Ch 12 of Mitchell Wray and Watts Textbook see IM-164967 for book overview. Compare with SD CLD IM-169071
Summary of Ch1 of Mitchell Wray and Watts Textbook see IM-164967 for overview
IM-168155 Summary of Ch 27 of Mitchell Wray and Watts Textbook see IM-164967 for book overview with simplified Mike Radzicki's 2003 Evolutionary Economics history article added
Summary of Ch 13 of Mitchell Wray and Watts Textbook see IM-164967 for book overview