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Modern Monetary Theory and European Macroeconomics

Maastricht Summer School
Netherlands, Maastricht
Maastricht Summer School Netherlands, Bonnefantenstraat 2, 6211 KL Maastricht, The Netherlands
Tuition fee €499 one-time
More information

maastrichtsummerschool.nl 

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

Not available for applying at the moment
Not available for applying at the moment