Understanding Modern Money Theory: Money and Credit in Capitalist Economies

In this illuminating book, Randall Wray explores the origins, nature, and evolution of money, emphasizing the critical role played by both credit and state money in capitalism. Integrating and updating the influential theories presented in Wray’s previous books, Money and Credit in Capitalist Economies and Understanding Modern Money, this new book addresses key questions in modern economic theory and policy. Wray adopts the monetary theory of production shared by the three principle heterodox traditions, Marxism, Institutionalism and Keynesianism to highlight the role played by money in the capitalist system. He applies Keynes's liquidity preference theory and Marx's labor theory of value to examine the determinants of the value of money and uncover the systemic properties driving capitalist production. He provides insights into the vital role of the state in the development and regulation of the modern monetary system. Finally, he identifies how monetary and fiscal policy can be improved to mitigate future challenges and promote economic, social and environmental sustainability. Students and scholars of heterodox approaches to economic theory, the endogenous approach to money and banking, and fiscal and monetary policy will greatly benefit from this valuable book. It is also a vital resource for academics studying the social sciences, such as sociology, political science and anthropology.

Table of Contents:
Contents Preface vii 1 Orthodox versus heterodox approaches to money 2 Origins and nature of money 3 Credit money and the rise of banking, central banking, and public money 4 The state theory of money 5 Introduction to the origins of the endogenous money approach 6 Endogenous money: a credit and state money approach 7 Money and interest rates 8 Sovereign currency and fiscal policy 9 The balance sheet approach to money and finance 10 Money and the logic of capitalism 11 Employment policy and the value of the currency 12 Conclusion: the challenges ahead Bibliography

About the Author :
L. Randall Wray, Senior Scholar and Professor of Economics, Levy Economics Institute, Bard College, USA

Review :
‘For over thirty years, Randy Wray has sought to dispel entrenched misconceptions of the theory and practice of money. Understanding Modern Money Theory is a magnificent, successful culmination of this endeavour, providing a lucid account of the nature and history of money, and how it can be carefully used to achieve full employment and economic wellbeing.’ ‘For decades, L. Randall Wray has helped us recognize that “there is no money without credit” and so challenged fundamentally conventional narratives about governance and the capitalist marketplace. This update to his influential work and brilliant synthesis of a multi-disciplinary literature is an essential and accessible introduction to understanding the monetary production economy.’ ‘This is Wray’s best volume so far. The result of decades of research, it flows beautifully from discussions of the origins of money through to how financing really works and finally to how we absolutely CAN afford to address the crises of today. In fact, we cannot afford not to.’