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AD-AS Analysis from the Perspective of Functional Finance Theory and MMT

Author

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  • Tanaka Yasuhito

    (1 Doshisha University, Faculty of Economics, Japan .)

Abstract

In the past few years, MMT (Modern Money Theory or Modern Monetary Theory) has been increasingly discussed in Japan as well as in the U.S. However, both in the U.S. and Japan, analysis using mathematics is lacking and analysis using IS-LM and AD-AS analysis methods in macroeconomics is almost non-existent.

Suggested Citation

  • Tanaka Yasuhito, 2023. "AD-AS Analysis from the Perspective of Functional Finance Theory and MMT," Folia Oeconomica Stetinensia, Sciendo, vol. 23(1), pages 263-283, June.
    • Handle: RePEc:vrs:foeste:v:23:y:2023:i:1:p:263-283:n:2
    DOI: 10.2478/foli-2023-0014
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    References listed on IDEAS

    as
    1. Yasuhito Tanaka, 2021. "An Elementary Mathematical Model for MMT (Modern Monetary Theory)," Research in Applied Economics, Macrothink Institute, vol. 13(3), pages 1-20, September.
    2. Tanaka, Yasuhito, 2022. "Budget deficit in a growing monetary economy: ver. 2," MPRA Paper 115631, University Library of Munich, Germany.
    3. Yasuhito Tanaka, 2021. "Very Simple Mathematical Model of MMT (Modern Monetary Theory)," Business and Economic Research, Macrothink Institute, vol. 11(3), pages 78-87, December.
    4. Otaki, Masayuki, 2009. "A welfare economics foundation for the full-employment policy," Economics Letters, Elsevier, vol. 102(1), pages 1-3, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    AD curve; AS curve; Functional Finance Theory; MMT (Modern Monetary Theory); budget deficit;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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