Modern Monetary Theory and European Macroeconomics
Netherlands, Maastricht
| Study location | Netherlands, Maastricht |
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| Type | Summer Courses, Full-time |
| Nominal duration | 1 week (2 ECTS) |
| Study language | English |
| Course code | MSS0010 |
| Tuition fee | €499 one-time |
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| Entry qualification | Enrolled as an Undergraduate student or Undergraduate diploma The entry qualification documents are accepted in the following languages: English. Often you can get a suitable transcript from your school. If this is not the case, you will need official translations along with verified copies of the original. |
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| Language requirements | English The language of the course is English, so we expect a fluent level and the ability to follow and participate in class. |
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| More information |
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Overview
Course Description
The course introduces students to Modern Monetary Theory (MMT) in the context of the Eurozone. The course explains money creation and its macroeconomic consequences, including the response to the pandemic, fiscal framework of the European Union and its recent reform, causes and consequences of inflation and unemployment.
The balance sheets and transactions that are relevant for understanding modern money are examined, with a focus on the Eurozone. Explanations include the idea that banks can create bank deposits through their accounting software, that governments spend first and collect taxes later and that central banks use a set of interest rates as their main tool of policy instead of manipulating the money supply.
Goals
• Knowledge of central banks and monetary policy.
• Understanding the operations of the Treasury and fiscal operations.
• Grasp of credit creation and clearing process in the banking system.
• Ability to aggregate balance sheets to use sectoral balances as a tool for macroeconomics.
• Insights on the economic history of the eurozone, its crisis and possible remedies.
Recommended Literature
Ehnts, Dirk. 2017. Modern Monetary Theory and European Macroeconomics, Abingdon: Routledge (ISBN hardcover and ebook: 978-1-138-65477-8 and 978-1-315-62303-0)
There is now a Dutch book available for a short introduction to Modern Monetary Theory:
Ehnts, Dirk. 2024. Moderne Monetaire Theorie, Walburg Pers (ISBN:9789464563009)
www.walburgpers.nl/nl/book/9789464563009/moderne-monetaire-theorie
Teaching methods
PBL
Assessment methods
Written Exam
Course Coordinator
Dr. Dirk Ehnts