What is Monetary Realism?
Monetary Realism (MR) is a description of the monetary system applicable to nations with floating exchange rates and non-convertible fiat currencies (see here for our full primer). Monetary Realism describes how a modern monetary system is a tool formed by the people of a nation that is intended to be utilized to optimize living standards. This relationship is deep, complex and often misunderstood. We hope to bring balance and objective insights to the discussion in order to clarify many of the misconceptions about money, economics and the monetary system. Our goal with MR is to focus on the core operational realities of the economy while any policy ideas are entirely peripheral to MR.
At times, MR will discuss options that a government can use to benefit from this understanding of the modern monetary system, but one of our primary goals will be to distinctly differentiate policy prescriptions from descriptive aspects of the monetary system. While we might provide policy prescriptions at times, our primary goal here is to offer the reader a better understanding of the ways our monetary system operates. Any policy ideas are entirely peripheral to the core understanding of the monetary system.
Our mission here is to provide an unbiased and apolitical (as best that can be achieved!) perspective of the monetary system. We want to educate the public so that they can obtain a better understanding of the system and make more informed decisions. In keeping with this educational approach we hope the reader will not be afraid to offer their own policy ideas, critiques of MR and utilize the comments for furthering education.
MR was established in 2011 after several disagreements about the operational realities and prescriptive aspects of the monetary system with several different schools of economic thought. The primary contributors to the school of MR are Cullen Roche, Michael Sankowski, Carlos Mucha, Brett Fiebiger and JKH (who can’t be named for professional reasons).