Professor Kelton is critical of popular thinking among both government leaders and mainstream economists that a government budget is like a household budget and that excessive spending and borrowing will lead to bankruptcy. In her 2020 best seller The Deficit Myth: Modern Monetary Theory and the Birth of the People's Economy, Professor Kelton espouses a number of theories that run against the grain of popular economic theory.įoremost of these is the notion that deficits don't matter, because any government that has the power to create its own currency will never run out of money. She is also one of the leading proponents of MMT (modern monetary theory), described as a heterodox (antonym for orthodox) macroeconomic theory that views currency created by a sovereign federal government as a public monopoly. She previously served as the Chief Economist for the US Senate Budget Committee and has served as an advisor to Presidents Barack Obama and Joe Biden. Stephanie Kelton is a professor of economics and public policy at Stony Brook University in New York.
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