![]() ![]() ![]() True, our government need never default since it can always print dollars to repay Treasury bonds. True, the federal government can spend any amount by simply printing up the needed money (in reality, creating bank reserves). But when the implications don’t lead to her desired conclusions, her logic, facts and language turn into pretzels. Kelton, a professor of economics at Stony Brook University and senior economic adviser to Bernie Sanders’s presidential campaign, starts with a few correct observations. ![]() What is MMT? Its advocates have told us in essays, blog posts, videos and tweets what MMT says about this and that, but what is its logic and evidence? As a monetary theorist who is also skeptical of conventional wisdom, I looked forward to a definitive exposition from Stephanie Kelton’s “The Deficit Myth: Modern Monetary Theory and the Birth of the People’s Economy.” ![]() federal government can and should freely print money to finance a massive spending agenda, with no concern about debt and deficits. Its central proposition states that the U.S. Modern monetary theory, known as MMT, erupted suddenly into the public consciousness when it won the attention of high-profile politicians including Bernie Sanders and Alexandria Ocasio-Cortez and their media admirers. ![]()
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