2020 年 2 巻 p. 148-174
In this paper, we analyze the macroeconomic effects of the coordinated fiscal and monetary stabilization policy in the manner of MMT by using a dynamic Keynesian model that has been developed by ourselves and others. The MMT (Modern Monetary Theory or Modern Money Theory), which was proposed by L. R. Wray, W. Mitchell, M. Watts and others, has the following remarkable characteristics. (1) The role of the central bank is completely passive in the financing of government expenditure, which is actively determined by the government. (2) The amount of government debt is not subject to the constraint of fiscal policy, its only constraint being the rate of inflation. In this paper, we construct a mathematical model that incorporates these characteristics and study the dynamic stability/instability of the coordinated fiscal and monetary stabilization policy.
