Conclusions: Modern Money Theory for Sovereign Currencies

L. Randall Wray

Chapter 10 in Modern Money Theory, 2015, pp 270-292 from Palgrave Macmillan

Abstract: Abstract In this Primer we have explored the macro identities as well as the stock-flow implications that are necessary to formulate appropriate policy for any sovereign nation, including developing nations. We carefully examined operational realities for a nation that adopts a sovereign currency. We have also explored the constraints imposed by different currency regimes on domestic policy formation. We concluded that floating a currency expands domestic policy space. Still, even in the context of a developing nation operating with a pegged currency, the space available to the issuer of the currency (the sovereign government) is almost certainly greater than what is generally recognized.

Keywords: Interest Rate; Monetary Policy; Central Bank; Foreign Currency; Global Financial Crisis (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-53992-2_11

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DOI: 10.1057/9781137539922_11

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