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Do you have any idea how aggressively macroeconomists police the boundaries of macroeconomics to prevent the introduction of a formal model with a bank-based money supply? I have been working on that for 20 years on and off. Here are five models: 1/6
From my dissertation, rejected JME and others: Short-term credit: A monetary channel linking finance to growth 2/6 papers.ssrn.com/sol3/papers.cf…
An Idealized View of Financial Intermediation economics-ejournal.org/economics/jour… Related to Why Inside Money Matters (JMCB 2007): onlinelibrary.wiley.com/doi/abs/10.111… 3/6
More recently using mechanism design Re-imagining Money and Banking: A New Monetarist Approach papers.ssrn.com/sol3/papers.cf… 4/6
Or based on the Lagos-Wright model: The Nature of Money in a Convertible Currency World papers.ssrn.com/sol3/papers.cf…
5/6
5/6
I'm not claiming that these are perfect papers. I wd love 2have conversations about how 2improve. But the truth that in the modern macro profession, you can't even get in the door with these ideas. Theyre rejected out of hand. So I find your complaint completely unconvincing. 6/6
cc: @Noahpinion
Note that this is not MMT, but these are very much the foundations on which MMT-like models can be built. Those foundations are simply not permitted as part of the discourse of modern macroeconomics. 7/6
