An Elementary Mathematical Model for MMT (Modern Monetary Theory)

In recent years, a school of economics called MMT (Modern Monetary Theory) has been attracting attention, but it not analyzed theoretically or mathematically. This study aims to provide theoretical basis for the skeleton argument, while maintaining basics neoclassical microeconomic framework, such as utility maximization consumers by means functions and budget constraint, profit firms in monopolistic competition, equilibrium supply demand goods. Using simple static model that includes economic growth due technological progress, we will argue that: 1) continuous deficit is necessary maintain full employment when economy growing, this does have be covered future surpluses; 2) Inflation caused actual exceeds level sufficient employment. order avoid further inflation, certain deficit; 3) A shortfall leads recession involuntary unemployment. To recover from this, required. However, since after restored, created overcome need surpluses, nor should be.