Study Stack
AFJM Coffee House

TOPIC: Money and Banking:
Assessing overlaps and differences between SMR and MMT

With Maurice Höfgen

Topic. On April 4, 2020 the AFJM Coffee House hosted Maurice Höfgen. The topics discussed were 1) the ”Rethinking the Role of Banks in Economics Education” campaign, of which Mr. Höfgen is the lead coordinator, and 2) the overlap and difference between Sovereign Monetary Reform (SMR) and Modern Monetary Theory (MMT). Because proponents for so-named Sovereign Monetary Reform (SMR) and adherents of Modern Monetary Theory (MMT) have different assessments of money and banking the dialogue aimed at elaborating overlaps and differences between the two.

Something of a document might still come out of this dialogue, about which we will keep you informed.

Presenter. Maurice holds a master’s degree in Economics from the University of Maastricht (Netherlands) and is a member of Samuel Pufendorf Society for Political Economy and Pluralism in Economics Maastricht. On top, he is engaged as an author at the online magazine Makroskop and took the steering group lead for the ”Rethinking the Role of Banks in Economics Education” campaign by Rethinking Economics. His research mostly falls within the field of Modern Monetary Theory. Ultimately, his work is aimed at unveiling the power of the monetary system to serve the public purpose leading to a more just and sustainable economy in the future. Currently, Maurice is authoring two books on this subject.

Sources. During the presentation and discussion a few studies and ideas were offered as background information or for further study by both Mr. Höfgen and participants.

This is a list of these items categorized under 1) sources mentioned by Mr. Höfgen; 2) sources mentioned by participants; 3) selection of monetary theory related items by Mr. Höfgen.


1. Sources mentioned by Mr. Höfgen

Pluralism in Economics. 2019. "An Open Letter to the Dean of SBE and all Economics Professors at Maastricht University (UM)". PINE Maastricht, 18 Feb 2019.

Rethink Economics. 2019.”Open Letter: Rethinking the Role of Banks in Economics Education”. Rethink Economics.

Rethink Economics. 2019. "Why Reform the Curriculum?" Rethink Economics.

Huber, Joseph. 2019. "Modern Money Theory revisited – still the same false promise". AFJM, 27 Mar 2019.

Mosler, Warren. 1997. "Full Employment and Price Stability". Journal of Post Keynesian Economics, 20/2: 167-182.

Mosler, Warren. 2010. Seven Deadly Innocent Frauds of Economic Policy. Valance Co.

Mosler, Warren. 2012. "Proposals for the Banking System, the FDIC, the FED and the Treasury". In Rochon, Louis-Philippe & Olawoye, S.Y. (Eds.), Monetary Policy and Central Banking: New Directions in Post-Keynesian Theory. Cheltenham, UK & Northampton, MA: Edward Elgar Publishing. Pp. 53-61.

Bell, Stephanie. 2000. "Do Taxes and Bonds Finance Government Spending?" Journal of Economic Issues, 34/3: 603-620.

Bell, Stephanie. 2001. "The Role of the State and the Hierarchy of Money". Cambridge Journal of Economics, 25/2: 149-163.

Bell, Stephanie & Wray, L. Randall. 2002. "Fiscal Effects on Reserves and the Independence of the Fed". Journal of Post Keynesian Economics, 25/2: 263-271.

Wray, L. Randall (Ed.). 2004. Credit and State Theories of Money: The Contributions of A. Mitchell Innes. Edward Elgar Publishing.

Wray, L. Randall. 2014. "From the State Theory of Money to Modern Money Theory: An Alternative to Economic Orthodoxy". Working Paper No. 792, Levy Economics Institute.


2. Sources and issues suggested or mentioned by participants

Alliance For Just Money. 2019. "Statement by the Alliance For Just Money on the Open Letter 'Rethinking the Role of Banks in Economics Education'”. AFJM, 4 Dec 2019.

Huber, Joseph. 2014. “How to emulate plain single-circuit sovereign money with a 100%-reserve system”. Sovereign Money: Website for New Currency Theory and Monetary Reform.

Huber, Joseph. 2017. “Split-Circuit Reserve Banking: Functioning, Dysfunctions and Future Perspectives”. Sovereign Money: Website for New Currency Theory and Monetary Reform. Jan 2017. And in: Real-World Economics Review, 80 (26 June 2017): 63-84.

Freire, Paulo. 1970. Pedagogy of the Oppressed. New York: Herder and Herder. Translated from Portuguese by Myra Ramos.


3. Monetary Theory Related Items by Mr. Höfgen

Pluralism in Economics. 2019. "An Open Letter to the Dean of SBE and all Economics Professors at Maastricht University (UM)". PINE Maastricht, 18 Feb 2019.

Rethink Economics. 2019. ”Open Letter: Rethinking the Role of Banks in Economics Education”.Rethink Economics.

Höfgen, Maurice. 2019. "Students demand to learn the truth about banks”. Positive Money UK, 7 Nov 2019.

Höfgen, Maurice. 2019. “What fundamental economic and political change is needed for an effective response to climate change?“. Rethinking Economics Journal.

Ehnts, Dirk H. & Höfgen, Maurice. 2019. "Modern Monetary Theory: A European Perspective." Real-World Economics Review, 89: 75-84.

Ehnts, Dirk H. & Höfgen, Maurice. 2019. "The Job Guarantee: Full Employment, Price Stability and Social Progress." Society Register, 3/2: 49-65.

Ehnts, Dirk H. & Höfgen, Maurice. 2020. "Modern Monetary Theory and the Public Purpose". Working Paper No. 133/2020. Berlin: Institute for International Political Economy.

Ehnts, Dirk H. and Höfgen, Maurice. 2020. “Modern Monetary Theory: A European Perspective.” Chapter in Fullbrock, Edward and Morgan, Jamie. 2020. Modern Monetary Theory and its Critics. Bristol, UK: World Economics Association.

Höfgen, Maurice. 2019. "How could an international exchange rate regime that fosters economic development on a global scale be designed? – A MMT-consistent proposal". Master’s Thesis in Economics, Maastricht University (unpublished).


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GOT IDEAS?  Contact Bo-Young Lim or Mark Young if you have specific topic ideas you'd like to propose/lead.,


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