Modern Monetary Theory and European Macroeconomics

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.

Course leader

Dirk Ehnts

Target group

Enrolled as an Undergraduate student or Undergraduate diploma

Course aim

• 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.

Fee info

EUR 499: Tuition fee

Scholarships

No scholarships are available for this course.