Beyond Modern Money Theory: a Post-Keynesian approach to the currency hierarchy, monetary sovereignty, and policy space

Daniela Prates
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Daniela Prates: Senior Economic Affairs Officer, United Nations Conference on Trade and Development (UNCTAD) and Associate Professor of Economics (on leave), University of Campinas, Brazil

Review of Keynesian Economics, 2020, vol. 8, issue 4, 494–511

Abstract: This paper provides an alternative view of monetary sovereignty (MS) from the Neo-Chartalist approach found in the Modern Money Theory literature. The differences between the author's approach to MS and Neo-Chartalism cover the following aspects: the nature of money, the acceptability of money, and the relationship between the central bank and the Treasury. The paper then analyses the relationship between MS, the currency hierarchy (CH), and policy space. The focus is placed on emerging-market economies. It is argued that emerging-market economies' policy space is determined by the interplay of two factors: the degree of MS and the position of national money (that encompasses the state and bank monies) within the CH.

Keywords: monetary sovereignty; currency hierarchy; policy space; Modern Money Theory; Post-Keynesian theory; emerging-market economies (search for similar items in EconPapers)
JEL-codes: E42 F41 F62 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:elg:rokejn:v:8:y:2020:i:4:p494-511

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