Stephanie Kelton: THE DEFICIT MYTH

THE DEFICIT MYTH Why states can – and must – afford substantial economic stimulus programs    Stephanie Kelton, US-American economist  in conversation with Robert Misik, author and journalist   The global economy is in a serious crisis, with governments launching programs to rescue companies and stabilize the economy. Budget deficits are reaching substantial amounts. Are government bankruptcies or hyperinflation looming on the horizon?  Stephanie Kelton takes a refreshing, systematic –and eye-opening – perspective at government spending. The question, she argues, is not what a state may afford, as unlike private households it can afford anything. The question is what a state is supposed to deliver. The wealth of a society is measured in terms of prosperity, job security, the production of goods, and inclusive social welfare of all citizens. Economies cannot "save themselves rich", they can only "invest richly". Therefore, a sole focus on the budgetary deficits is misplaced. Globally, we observe a new macroeconomic paradigm emerging; one, which considers "budgetary discipline" as secondary to impact. The "Modern Monetary Theory", of which Stephanie Kelton is the most prominent representative, constitutes a radical manifestation of this new consensus with a strong potential to shake up the political agenda. Having worked for Bernie Sanders in the US Senate and in her present function as one of Joe Biden's economic advisors Kelton is well positioned to influence decision makers.  Stephanie Kelton´s book "The Deficit Myth" has been on the New York Times bestseller list for months.   Sephanie Kelton is an US-American economist. One of the leading representatives of Modern Monetary Theory, she is also a supporter of the idea of job guarantees. During the primaries for the US presidential election in 2016, she was one of the advisors and supporters of Bernie Sanders' campaign. Before that, she was already his chief economist on the Senate Budget Committee. Kelton is a professor at the State University of New York at Stony Brook.   Stephanie Kelton The Deficit Myth: Modern Monetary Theory and How to Build a Better Economy Publisher: John Murray; Number of Pages: 336; 23,30 €