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The Theory of the Emission Economy Bolshevik roots of "Modern Monetary Theory"

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  • Nikolay Nenovsky

    (CRIISEA - Centre de Recherche sur les Institutions, l'Industrie et les Systèmes Économiques d'Amiens - UR UPJV 3908 - UPJV - Université de Picardie Jules Verne)

Abstract

In this article we present the monetary theory, called the "Theory of Emission Economy (TEE)", most fully formulated by the Russian economist S. Falkner (1890-1938). Formulated exactly a century ago, it is strikingly reminiscent of modern "Modern Monetary Theory, MMT." Like MMT, TEE has had both supporters and serious critics. More importantly, in a certain period of time, 1918–1920, the TEE was put into practice, and the MMT's "consolidation hypothesis", that of merging the central bank with the treasury (government), became a reality (January 1920). The Bolsheviks' brief experience with MMT ended in disaster. Lenin himself, who at first shared its basic ideas, was forced to undertake monetary stabilization based on the parallel introduction of gold coins, chervonets. The purpose of this article is to present the theoretical discussions about TEE, as well as the monetary policies of Bolshevik Russia in order to derive some useful patterns for the state of monetary theory and practice today.
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  • Nikolay Nenovsky, 2020. "The Theory of the Emission Economy Bolshevik roots of "Modern Monetary Theory"," Working Papers hal-04084551, HAL.
    • Handle: RePEc:hal:wpaper:hal-04084551
    Note: View the original document on HAL open archive server: https://u-picardie.hal.science/hal-04084551
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    1. Eric Magnin & Nikolay Nenovsky, 2024. "Soft monetary constraint and shortage in the European sovereign debt economy," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 37(1), pages 55-80, March.

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    • B24 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Socialist; Marxist; Scraffian
    • B3 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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