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| List of Illustrations | |
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| Preface | |
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| Box: Definitions | |
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| The Basics of Macroeconomic Accounting | |
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| The basics of accounting for stocks and flows | |
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| MMT, sectoral balances, and behavior | |
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| Government budget deficits are largely nondiscretionary: the case of the Great Recession of 2007 | |
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| Accounting for real versus financial | |
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| Recent US sectoral balances: Goldilocks and the global crash | |
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| Stocks, flows, and balance sheet: a bathtub analogy | |
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| Spending by Issuer of Domestic Currency | |
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| What is a sovereign currency? | |
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| What backs up currency and why would anyone accept it? | |
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| Taxes drive money | |
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| What if the population refuses to accept the domestic currency? | |
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| Keeping track of stocks and flows: the money of account | |
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| Returning to real versus nominal stocks and flows | |
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| Sustainability conditions | |
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| The Domestic Monetary System: Banking and Central Banking | |
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| IOUs denominated in the national currency: government and private | |
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| Clearing and the pyramid of liabilities | |
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| Central bank operations in crisis: lender of last resort | |
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| Balance sheets of banks, monetary creation by banks, and interbank settlement | |
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| Exogenous interest rates and quantitative easing | |
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| The technical details of central bank and treasury coordination: the case of the Fed | |
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| Treasury debt operations | |
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| Fiscal Operations in a Nation That Issues Its Own Currency | |
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| Introductory principles | |
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| Effects of sovereign government budget deficits on saving, reserves, and interest rates | |
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| Government budget deficits and the "two-step" process of saving | |
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| What if foreigners hold government bonds? | |
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| Currency solvency and the special case of the US Dollar | |
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| Sovereign currency and government policy in the open economy | |
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| What about a country that adopts a foreign currency? | |
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| Modern Money Theory and Alternative Exchange Rate Regimes | |
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| The gold standard and fixed exchange rates | |
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| Floating exchange rates | |
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| Commodity money coins? metalism versus nominalism, from Mesopotamia to Rome | |
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| Commodity money coins? metalism versus nominalism, after Rome | |
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| Exchange rate regimes and sovereign defaults | |
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| The Euro: the set-up of a nonsovereign currency | |
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| The crisis of the Euro | |
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| Endgame for the Euro? | |
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| Currency regimes and policy space: conclusion | |
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| Monetary and Fiscal Policy for Sovereign Currencies: What Should Government Do? | |
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| Just because government can afford to spend does not mean government ought to spend | |
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| The "free" market and the public purpose | |
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| Functional finance | |
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| Functional finance versus the government budget constraint | |
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| The debate about debt limits (US case) | |
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| A budget stance for economic stability and growth | |
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| Functional finance and exchange rate regimes | |
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| Functional finance and developing nations | |
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| Exports are a cost, imports are a benefit: a functional finance approach | |
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| Policy for Full Employment and Price Stability | |
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| Functional finance and full employment | |
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| The JG/ELR for a developing nation | |
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| Program manageability | |
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| The JG/ELR and real world experience | |
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| Conclusions on full employment policy | |
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| MMT for Austrians: can a libertarian support the JG? | |
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| Inflation and the consumer price index | |
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| Alternative explanations of hyperinflation | |
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| Real-world hyperinflations | |
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| Conclusions on hyperinflation | |
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| Conclusion: MMT and policy | |
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| What Is Money? Conclusions on the Nature of Money | |
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| Is money a physical thing? | |
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| Propositions on the nature of money | |
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| Money is debt | |
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| Liquidity and default risks on money IOUs | |
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| Why are banks special? | |
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| Conclusions | |
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| Notes | |
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| Bibliography | |
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| Index | |