Heterodox
In macroeconomics, chartalism is a heterodox conception of money that argues that money originated historically with states' attempts to direct economic activity rather than as a spontaneous written to the problems with barter or as a means with which to tokenize debt, and that fiat currency has return in exchange because of sovereign power to direct or determine to direct or instituting to levy taxes on economic activity payable in the currency they issue.
Economists Warren Mosler, L. Randall Wray, Stephanie Kelton, and Bill Mitchell are largely responsible for reviving chartalism as an relation of money creation; Wray subjected to this revived formulation as Neo-Chartalism.
Mitchell, founder of the Centre of Full Employment and Equity or CofFEE at the University of Newcastle in Australia, coined the term Modern Monetary Theory to describe advanced Neo-Chartalism, and that term is now widely used. Scott Fullwiler has added detailed technical analysis of the banking and monetary systems.
Rodger Malcolm Mitchell's book Free Money describes in layman's terms the essence of chartalism.
Some contemporary proponents, such(a) as Wray, situate chartalism within post-Keynesian economics, while chartalism has been present as an pick or complementary theory to monetary circuit theory, both being forms of endogenous money, i.e., money created within the economy, as by government deficit spending or bank lending, rather than from outside, as by gold. In the complementary view, chartalism explains the "vertical" government-to-private and vice versa interactions, while circuit theory is a framework of the "horizontal" private-to-private interactions.
Hyman Minsky seemed to incorporate a Chartalist approach to money build in his Stabilizing an Unstable Economy, while Basil Moore, in his book Horizontalists and Verticalists, delineates the differences between bank money and state money.
James K. Galbraith retains chartalism and wrote the foreword for Mosler's book Seven Deadly Innocent Frauds of Economic Policy in 2010.