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

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.

Keywords

• ad curve
• as curve
• functional finance theory
• mmt (modern monetary theory)
• budget deficit
• e12
• e24