What is Modern Monetary Theory? (with Stephanie Kelton)

Pitchfork Economics has the podcast What is Modern Monetary Theory? (with Stephanie Kelton).

Is government debt real? Is anything real? Professor Stephanie Kelton gives Nick and Goldy a master class on the hottest idea in economics right now: Modern Monetary Theory.

Stephanie Kelton is a professor of public policy and economics at Stony Brook University and a senior economic adviser to Bernie Sanders’s 2016 and 2020 presidential campaigns. She was the chief economist on the U.S. Senate Budget Committee in 2015 and in 2016, POLITICO named her one of the 50 people most influencing the public debate in America. Her forthcoming book, ‘The Deficit Myth: Modern Monetary Theory and the Birth of a New Economy’ will be published by Public Affairs in 2020.

It is always interesting to hear podcasts involving experts in MMT being interviewed by non-experts. After the experts sign off the non-experts talk about all that they don’t understand about MMT. That is exactly the time you need the expert to explain to you the parts you didn’t get. There are answers to all the questions they raise after Stephanie Kelton signs off. She is exactly the person who could have straightened them out, but they let her go.

With only a few years of study of MMT on my part, I think I could have answered all their questions and doubts.

If I had the time and the energy, I would go back through the podcast, collect all the issues they raised before and after they were speaking to Stephanie Kelton, and try to answer them all here.

To concentrate my energy in clarifying what Stephanie Kelton said, People could pose their questions on my Facebook post, and I will try to answer them there.

One thing that I think may have gotten lost in the conversation is that debt of currency users can be a concern, where “debt” of the currency issuer is a totally different matter.

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