If you want a deep and clear understanding of the current monetary system, as well as the only other possible models under double entry accounting, click the link below for my paper on SSRN. In-joy! https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7533201 Abstract This paper presents a ledger-based analysis showing that, because modern currencies are issued as liabilities of the issuer, double-entry accounting limits fiat currency systems to two structural frameworks: a direct “spend-first” circuit (Model 1) and a segmented institutional “tax-andborrow” circuit (Model 2). Using the mathematical identities of double-entry bookkeeping, the paper traces balance sheet expansion, contraction, asset swaps, and liability swaps across central bank, treasury, commercial banking, and non-government non-bank public ledgers. While Modern Monetary Theory accurately describes the accounting abstractions of Model 1, an examination of public data and institutional operating frameworks in the United States and the United Kingdom confirms that both jurisdictions operate today under Model 2. We further show that Treasury-issued stablecoins, if introduced, would operate under Model 1, and that Model 1 and Model 2 can, in principle, operate simultaneously without interference. This paper clarifies contemporary macroeconomic debates by showing how structural constraints, such as the UK’s Full Funding Rule and the U.S. Treasury General Account legal framework, determine how fiscal deficits are financed, and in turn whether the aggregate fiat money supply and deposit money supply expand permanently, temporarily, or not at all.

The key message of this new book will be quite familiar to electronic or servo-mechanical engineers - that time matters and that stocks give memory to a flowing system. But this message seems to be shocking, or rather is taken as heretical, in orthodox economics - as Tyrone Keynes says he expects. Of course, no engineers ever dealt with a system as multi-faceted and intricately-interwoven, or as large and as non-linear, as a whole economy. Tyrone Keynes here goes step-by step, with graphs and moderate mathematics, discussing and explaining as he goes. His written style is much more focussed and precise than the ‘off-the-cuff style of his Podcasts. What this book does is to scrupulously gather together and carefully deploy fragments of existing understanding. The triumph of the book surely arises from how Tyrone Keynes has taken the ‘straight-line’ dependencies conventionally identified by Keynesian economics and turned them into correctly-scaled and inter-connected relationships, expressed as a function of continuously-incrementing time. That’s a Herculean task that few economists - and of course no orthodox economists - have attempted. He shows how nonsensical and irresponsible a ’ceteris paribus’ assumption in economics truly is. Crucially, he demonstrates why the way that an economy evolves today is dependent not only on the forces it experiences today but also on where and how it changed in the past. History matters. The behaviour of two economies that are in precisely the same current state will be different if those economies reached that state by a different path. Tyrone Keynes demonstates the immense potential and power of economic modelling in Ravel software, not just for insightful academic research but for astute management of a business or the economy of a Nation. This book, and Steve Keen’s work that powers it, feels like one of the few reasons for optimism in today’s world - we stand on the shores of a new land of understanding. https://www.amazon.co.uk/Beyond-Equilibrium-Keynesian-Approach-Macroeconomics/dp/1069829609