Stephanie Kelton on Modern Monetary Theory: government funding without inflation : Planet Money We rethink everything we know about government spending, taxes, and the nature of money.
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Modern Monetary Theory (Classic)

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Modern Monetary Theory (Classic)

Modern Monetary Theory (Classic)

Modern Monetary Theory (Classic)

  • Download
  • <iframe src="https://www.npr.org/player/embed/958854717/958927220" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">

Embracing Modern Monetary Theory is like staring at this optical illusion. You can look at the same thing, and see things totally differently. Brocken Inaglory/Wikimedia Commons hide caption

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Brocken Inaglory/Wikimedia Commons

Embracing Modern Monetary Theory is like staring at this optical illusion. You can look at the same thing, and see things totally differently.

Brocken Inaglory/Wikimedia Commons

Note: This episode originally ran in 2018

Some ideas seem too good to be true. Like this one. It comes from a 13-year-old listener named Amy. She says she knows the government has trouble finding enough money to pay for stuff like schools and hospitals. And she wondered if it has considered just printing more money. She asked us: Can the government do that? Just make more money to pay for stuff?

Fiscal hawks say no way! We'd have crazy inflation! But there's a group of economists that says yes, we can create way more money, without disaster. And pay for lots of stuff we want. They are the proponents of what's called Modern Monetary Theory, or MMT. Their ideas are getting out there, they have the memes to prove it.

Today, we try to understand a school of thought that is flipping economic theory on its head.

Music: "Spinning Piano" and Roof Top Pre-Game."

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