Modern Monetary Theory—three simple words that are tearing apart the left. Pete Davis and Sparky Abraham have spent the last few years feeling curious and confused about this highly contentious theory, which posits that the U.S. government can deficit spend much more than it currently believes it can. (Or maybe it doesn't posit that. We're not sure.) Together, they've decided to launch a new series, in which they will interview people across the spectrum of left economics, ask questions, admit what they don't know, and try and muddle through one of the most complex questions in the world of policy: is MMT real?
In this episode, Sparky and Nathan J. Robinson (@NathanJRobinson) of Current Affairs magazine interview Stephanie Kelton (@StephanieKelton), professor at Stony Brook University, author of the book "The Deficit Myth," and advisor to Bernie Sanders' 2016 Presidential Campaign. One of the preeminent theorists of Modern Monetary Theory, Professor Kelton explains a basic overview of the theory and what it offers policymakers at the federal level.
This episode was originally published on December 1, 2020 on the Current Affairs podcast feed, and is being republished now as the Rabbithole podcast picks up the question of "is MMT real?" Please excuse any outdated references, and stay tuned as we continue our investigations down the rabbithole.
This episode was edited by Dan Thorn (@danieljtvthorn) of Pink Noise Studios in Somerville, MA, and it features theme music by Danny Bradley (https://dannybradleymusic.com/). If you like the podcast, please consider supporting our investigations by becoming a patron.
Find Pete on Twitter at @PeteDDavis and Sparky at @sparkyabraham