Getting to Know Modern Monetary Theory (MMT)


Nerd Farmer Podcast has the episode Getting to Know Modern Monetary Theory (MMT): Nerd Farmer Academy — Dr. Fadhel Kaboub, Denison University — #136.

Today’s #NerdFarmerAcademy episode is a conversation with economist Dr. Fadhel Kaboub, Associate Professor of economics at Denison University and President of the Global Institute for Sustainable Prosperity. He is a noted expert in Modern Monetary Theory, heretofore MMT. MMT is an economic theory that posits our approach to debts and deficits is just wrong. MMT economists believe that the concerns frequently expressed about the US debt are basically economic concern-trolling. They note that because the US government, unlike you and I, is a currency issuer, rather than a currency user, the limits on government debt are much higher than most of us have been led to believe. They call on the government to use debt to do great things. MMT-ers believe we can afford a much more generous government that can make a meaningful difference in the lives of working people.

Fadhel Kaboub gives you the most painless introduction to MMT that you will ever hear. In less than an hour he tells you all the fundamentals you need to know and explains why you need to know them.

Fadhel Kaboub might be just a tad harsh in his judgment of Paul Samuelson. Over 50 years ago, I took my first college level economics course. It used Paul Samuelson’s book Fifth edition 1961. Somewhere I learned of the teachings of John Maynard Keynes. I presume it was from Paul Samuelson’s book. There are 7 entries on Keynes in the index of Samuelson’s book.

From what I have read since then, later additions of Samuelson’s book may have de-emphasized Keynes. Fortunately, I was out of college and didn’t get tainted by those later editions.

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