Network Analysis for Modern Monetary Theory

This article integrates Scott Fullwiller's two social fabric matrices for Federal Reserve and Treasury operations to help establish a number of results. First, the resulting network demonstrates that the components are involved in an intense, extensive, and complex network of interconnections. Second, given the numerous pathways in the network, it becomes clear that one needs to identify specific pathways when undertaking a discussion. Third, the article identifies variant criteria that guide the rules, regulations, and requirements of real-world monetary operations, and clarifies that the conflict between normative belief criteria and variant criteria is crucial for understanding the formulation of alternative monetary policies. Fourth, the article establishes that, beyond social criteria, technological criteria also deliver rules, regulations, and requirements to the institutions. Fifth, it further refines the social fabric matrix itself. Finally, the integrated matrix provides a base to which components may be added with a view to pursuing future research interests.