Proponents of Modern Monetary Theory (MMT) argue sovereign countries aren't operationally constrained by revenues when it comes to government spending because, as monopoly issuers of their currency, governments can print as much money as they need.
Given the huge financial costs of the COVID-19 pandemic, MMT is something we're hearing about more and more. Is it a whacky, flavour of the month theory, or is it the path forward?
In the video below David Cay Johnston, Pulitzer Prize winning investigative journalist, co-founder of DCReport, and Syracuse University law school lecturer, talks with economist Stephanie Kelton about her new book, the Deficit Myth, Modern Monetary Theory and the Birth of the People's Economy.
Kelton is a professor of economics and public policy at Stony Brook University, and a former chief economist on the US Senate Budget Committee (Democratic staff). Kelton also advises policymakers and consults with investment banks and portfolio managers.
The conversation was hosted by New York's Strand Book Store.