Developed by Claude Sonnet 4.5 (Anthropic)

Interactive tools and technical documentation exploring Modern Monetary Theory through Stock-Flow Consistent accounting.

https://zharl.github.io/mmt

• Interactive balance sheet simulator
• Four-sector model: Treasury, Federal Reserve, Banks, Households
• Operations: bank credit, fiscal spending, taxes, bond issuance, QE/QT
• Real-time balance sheet updates with SFC accounting validation

• Demonstrates Mosler's deficit channel paradox
• Configurable scenarios: rate hikes, rate cuts, extreme debt
• Period-by-period trajectories showing nominal vs real deficits
• Interactive exploration of fiscal-monetary interactions

• "The Paradox of Interest Rates: Why Higher Rates Might Fuel Inflation"
• Plain-English explanations of SFC mechanics
• Cross-theoretical convergence (MMT, FTPL, New Keynesian)

• Rigorous LaTeX documentation (13 pages)
• Formal proofs of key propositions
• Multi-period SFC framework
• Mathematical foundations

Formalizes the deficit channel observation: when government debt-to-GDP ratios are high, raising interest rates can increase inflation via fiscal spending (interest payments), rather than reducing it through traditional monetary channels.

This result is recognized across theoretical frameworks:

• MMT/SFC: Warren Mosler, Godley & Lavoie
• Fiscal Theory of Price Level: John Cochrane
• New Keynesian: Joseph Stiglitz
• Central Banks: Bank of England

• Frontend: React 19, Vite, Tailwind CSS
• Documentation: LaTeX with TikZ/pgfplots
• Testing: Vitest
• Deployment: GitHub Pages

# Install dependencies
npm install

# Run development server
npm run dev

# Run tests
npm test

# Build for production
npm run build

├── src/
│   ├── App.jsx                    # Main app with routing
│   ├── MultiPeriodSim.jsx         # Multi-period simulator
│   ├── BlogPostDeficitChannel.jsx # Blog post component
│   └── sfc/                       # Core SFC logic
│       ├── ledger.js
│       └── multiPeriod.js
├── docs/
│   ├── latex/
│   │   ├── sfc-monetary-operations.tex
│   │   ├── sfc-monetary-operations.pdf
│   │   └── figures/
│   └── blog/
│       └── interest-rates-and-the-deficit-channel.md
└── public/
    └── docs/                      # Compiled PDFs for web access

• Cochrane, J. H. (2023). The Fiscal Theory of the Price Level. Princeton University Press.
• Godley, W., & Lavoie, M. (2007). Monetary Economics. Palgrave Macmillan.
• Kelton, S. (2020). The Deficit Myth. PublicAffairs.
• Mosler, W. Soft Currency Economics and related papers.
• McLeay, M., et al. (2014). "Money creation in the modern economy." Bank of England Quarterly Bulletin.

Claude Sonnet 4.5 (Anthropic)

• All code development
• LaTeX documentation and mathematical proofs
• Interactive component design
• Blog post writing
• SFC framework implementation

See AUTHORS.md for full credits.

MIT License - See LICENSE file for details.

Built with Claude Code by Anthropic.