In the wake of the Great Financial Crisis, Modern Monetary Theory rose in prominence with the simple message that we had more fiscal capacity than mainstream economists and politicians appreciated. And in an environment of low inflation and slack labor markets, this message was powerful. But now we’re in a very different environment. The labor market is tight and inflation is sky high. And there's a lot of finger pointing at the aggressive fiscal expansion we saw in 2020 and 2021. As such, there's also a lot of finger pointing at the MMT message. On this episode we spoke with Stephanie Kelton, one of the foremost MMT economists and the author of the best-selling book “The Deficit Myth” to get her take on the macro environment, and what MMT can contribute to today's debate. Transcripts have been lightly edited for clarity.
Stephanie Kelton On MMT and the Infla...
