Modern Monetary Theory for Policymakers: A Comprehensive Training Course
Introduction
Modern Monetary Theory (MMT) has emerged as a significant and often contentious school of thought, challenging conventional views on government finance, fiscal policy, and central banking. This training course provides a structured and objective exploration of MMT's core tenets and their implications for economic policy. We will examine the fundamental concepts, such as monetary sovereignty and the role of taxes, to understand how an MMT framework redefines the relationship between government spending, debt, and inflation. The program is designed to equip policymakers and analysts with the critical tools to engage with MMT's proposals and assess their potential real-world applications.
Going beyond the theoretical underpinnings, this course will analyze the practical policy prescriptions that MMT proponents advocate, including the Job Guarantee program and new approaches to managing inflation. We will delve into the policy debates surrounding MMT, contrasting its views with traditional macroeconomic frameworks and exploring the economic risks and opportunities associated with its implementation. Through this program, participants will be able to evaluate the strengths and weaknesses of MMT, enabling them to make informed decisions and contribute to the ongoing discourse on fiscal and monetary policy.
Target Audience
- Government policymakers and economists
- Central bank officials and researchers
- Treasury and finance ministry staff
- Fiscal and economic advisors
- Financial market analysts
- Academics and students of macroeconomics
- Public policy professionals
- Financial journalists
Duration
5 days
Course Objectives
Upon successful completion of this training, participants will be able to:
- Explain the foundational principles of Modern Monetary Theory.
- Analyze the role of monetary sovereignty in government finance.
- Evaluate the MMT perspective on taxes, deficits, and national debt.
- Discuss MMT's policy prescriptions for achieving full employment.
- Compare and contrast MMT with mainstream macroeconomic models.
- Assess the potential inflationary risks and challenges of an MMT framework.
Modules Course Content
Module 1: The Foundations of Modern Monetary Theory
- Understanding monetary sovereignty
- The vertical and horizontal money flows
- The role of the central bank and Treasury
- How government spending creates money
- MMT's unique definition of money
Module 2: MMT's View on Deficits and Debt
- The function of a fiscal deficit
- Why a sovereign government cannot "run out of money"
- The myth of a government "savings" constraint
- The national debt as private sector financial wealth
- MMT's perspective on intergenerational equity
Module 3: Taxes and Their Purpose
- The role of taxes in creating demand for currency
- Taxes as a tool for managing inflation
- The misconception of taxes funding government spending
- Using taxes to redistribute wealth
- The tax-driven model of the state
Module 4: The Job Guarantee and Full Employment
- The Job Guarantee as an automatic stabilizer
- How the Job Guarantee anchors the value of money
- Designing and implementing a Job Guarantee program
- The economic and social benefits of the program
- The Job Guarantee as an alternative to unemployment benefits
Module 5: MMT and Inflation
- The MMT theory of inflation
- The role of fiscal policy in managing inflation
- Fiscal tools for demand management
- The dangers of "demand-pull" and "cost-push" inflation
- The importance of the real resource constraint
Module 6: Comparing MMT to Mainstream Economics
- MMT versus the mainstream "loanable funds" model
- The role of interest rates in MMT versus mainstream theory
- The debate over crowding-out
- Different views on the relationship between money and inflation
- The limitations of traditional fiscal multipliers
Module 7: The Foreign Sector in an MMT Framework
- MMT's perspective on trade deficits
- The role of exchange rates
- The use of capital controls
- The impact on small open economies
- MMT on international reserve currencies
Module 8: MMT and Central Banking
- The central bank's role as an interest rate setter
- The relationship between monetary and fiscal policy
- The MMT critique of central bank independence
- Non-conventional monetary policy from an MMT perspective
- Case studies of central bank-Treasury coordination
Module 9: Policy Debates and Criticisms of MMT
- Arguments for and against MMT's core claims
- Potential inflationary risks
- The political challenges of implementing MMT policies
- The risk of fiscal profligacy
- The "what if" scenarios for an MMT-based economy
Module 10: Case Studies and Real-World Examples
- The Japanese experience with persistent deficits
- The US government's COVID-19 stimulus spending
- The role of the European Central Bank in the Eurozone
- Historical examples of monetary sovereignty
- The challenges for countries without monetary sovereignty
CERTIFICATION
- Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate
TRAINING VENUE
- Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.
AIRPORT PICK UP AND ACCOMMODATION
- Airport Pick Up is provided by the institute. Accommodation is arranged upon request
TERMS OF PAYMENT
Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com
For More Details call: +254-114-087-180