Stephanie Kelton in Defense of MMT

Stephanie Kelton’s much-awaited book, The Deficit Myth, is now available. In it, she makes the case for modern monetary theory – or MMT – as the paradigm to guide our fiscal policies. This book is exceptionally relevant, as we have seen several trillion dollars added to the federal deficit and a broad expansion of the Fed’s balance sheet in response to the coronavirus pandemic. That has fostered widespread speculation about the wisdom of those policies and whether they will lead to slower economic growth, inflation or something worse.  MMT provides a clear answer to those questions.