

US Fiscal Policy and the 'Deficit Myth' with Stephanie Kelton
37 snips Mar 13, 2025
Stephanie Kelton, a professor of economics and public policy at Stony Brook University, dives into the world of Modern Monetary Theory and its implications for U.S. fiscal policy. She critiques traditional views on budget deficits and highlights the case study of Japan's economic stability despite high deficits. Kelton discusses her unexpected journey from aspiring dentist to influential economist, and the importance of bipartisan collaboration in budget hearings. The conversation also touches on challenges of inflation and the bold proposal of a government-funded job guarantee.
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Path to Economics
- Stephanie Kelton's academic path changed due to a professor's influence, leading her to economics.
- She chose Cambridge over Harvard for graduate studies to explore heterodox economic thinking.
Further Studies
- Kelton's Cambridge master's program involved four year-long courses and a dissertation, which felt insufficient.
- She then pursued further studies at the New School, influenced by Wynne Godley and sectoral financial balances.
UMKC and MMT
- Kelton, Randy Ray, and Matt Forstatter joined UMKC due to Warren Mosler's funding, creating an MMT outpost.
- Mosler, considered the father of MMT, supported the graduate program's development.