The Idea Behind This Project
This project is dedicated to explaining the monetary system
We live in a state-issued monetary order, and money is not a neutral or purely technical instrument but a democratic institution. The state creates its own currency, and money itself originates in political — and therefore democratic — decisions. Modern Monetary Theory (MMT) provides an important framework for understanding these dynamics, showing that public spending is never constrained in the same way as household budgets. Claims of monetary scarcity are therefore less an economic reality than a political narrative — a convenient trick used to justify inaction. Recognising this helps us strengthen democracy: elected governments always have the capacity to mobilise public resources when they choose to do so.
The project also introduces five fundamental laws that economics must take into account, formulated within post-Keynesian theory to provide a more realistic account of how capitalism operates. First, the labour market does not operate like an ordinary commodity market: cutting wages does not solve unemployment. Second, Say’s Law does not apply: when households save more, total spending in the economy falls. Third, the quantity theory of money is misleading: prices do not simply rise because the money supply expands. Fourth, money is created through debt, a principle known as the endogenous theory of money. Fifth, economics must be understood in historical time and path-dependent processes. The future is fundamentally uncertain — not statistically predictable, but shaped by the decisions we make today and tomorrow.
For readers interested in the academic background, my approach rests on three main foundations. The first is historical time, following Joan Robinson’s distinction between theories that take historical processes seriously and those that rely on logical time within traditional equilibrium models. This perspective implies that economies do not naturally gravitate towards a desirable equilibrium, but are path-dependent, prone to crisis, and in constant need of interventions. In addition, I combine Heiner Flassbeck’s empirical approach, with whom I had the opportunity to collaborate, with the theoretical frameworks of Marc Lavoie (wage-growth models), Steve Keen (stock-flow models), and Paul Davidson (models that account for uncertainty).
All material provided here is freely accessible. However, maintaining this project involves ongoing costs and currently generates no income. Any form of support is therefore welcome, as it enables me to continue this work rather than eventually having to bring it to an end.
Jan Frederik Moos