Masters in Business US Fiscal Policy and the 'Deficit Myth' with Stephanie Kelton
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Mar 13, 2025 Stephanie Kelton, a professor of economics and public policy at Stony Brook University, dives into the world of Modern Monetary Theory and its implications for U.S. fiscal policy. She critiques traditional views on budget deficits and highlights the case study of Japan's economic stability despite high deficits. Kelton discusses her unexpected journey from aspiring dentist to influential economist, and the importance of bipartisan collaboration in budget hearings. The conversation also touches on challenges of inflation and the bold proposal of a government-funded job guarantee.
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UMKC and MMT
- Kelton, Randy Ray, and Matt Forstatter joined UMKC due to Warren Mosler's funding, creating an MMT outpost.
- Mosler, considered the father of MMT, supported the graduate program's development.
Senate Budget Committee
- Kelton became the chief economist for the Democratic staff of the Senate Budget Committee under Bernie Sanders.
- This role provided insights into the political dynamics of fiscal policymaking.
Deficit Myth
- Predicted negative consequences of deficits, like crowding out and inflation, haven't materialized.
- Kelton's book, "The Deficit Myth," challenges these conventional beliefs about deficits.
