What is Modern Monetary Theory? (with Stephanie Kelton)


Pitchfork Economics has a podcast What is Modern Monetary Theory? (with Stephanie Kelton),

Nick Hanauer struggles to figure out what Prof. Kelton is explaining, but he has built-in resistance to her ideas that hinders him. He comes close to getting it. He just needs to keep thinking about it. When he has a doubt about what MMT means, he needs to talk about his doubts with an expert. Frequently, when newcomers, like I once was, have doubts, the old ideas are sneaking back in. Since I have learned about and believed Keynesian economics since the early 1960’s, I have had less trouble than some people in accepting MMT.

Even some professional economists who had taught about Keynesian economics started suffering from brain rot introduced by Milton Friedman in the 1970s. I was too busy working, and disliked Friedman’s ideas, I guess I was immune to the brain rot.

CNBC has the video Bernie Sanders’ 2016 economic advisor Stephanie Kelton on Modern Monetary Theory and the 2020 race. This is even a better explanation of Modern Money Theory (MMT) than what Pitchfork Economics gleans in their podcast.


In the discussion of cost-push inflation at the end of this, even I learned a nuance that I hadn’t quite understood.

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