Discussion of Monetary Architecture with Steffen Murau

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view?

This week, we're reading Steffen Murau's 2020 paper, "A Macro-Financial Model of the Eurozone Architecture Embedded in the Global Offshore US-Dollar System" and using it as a jumping off point for discussion. What makes a monetary architecture "functional and complete"?

http://www.bu.edu/gdp/files/2020/07/Murau-Eurozone-architecture.pdf

What are the ultimate constraints on what Murau calls "elasticity space?" More generally, what exogenous constraints does a monetary architecture face? To what extent are those constraints natural, political, or both? How can the price level fit into our understanding of monetary architecture, shadow banking, and financial globalization?

Our weekly standing Zoom meeting time is 12 pm Eastern Time (America/New York) every Thursday.

See our Discord server for ongoing discussion: https://discord.gg/5npJQevQ