The influence of Modern Monetary Theory in Congress is growing faster than most people realize

M.M.T., as it’s known, is an economic theory that says government budget deficits don’t matter unless they overwhelm the economy’s productive capacity and cause high inflation. 

That message appeals to Democrats in Congress who want to raise spending without having to worry about the resulting red ink. It could even appeal to Republicans who want to cut taxes.

Representative John Yarmuth, Democrat of Kentucky, who is the chair of the House Budget Committee, gave a full-throated defense of the deficit-friendly theory to Washington’s sometimes skeptical viewership.

Yarmuth said he’s been telling his colleagues to read Kelton’s book, “The Deficit Myth: Modern Monetary Theory and the Birth of the People’s Economy,” which came out last year. 

Peter Coy  New York Times 1 September 2021

https://www.nytimes.com/2021/09/01/opinion/mmt-john-yarmuth.html

 

The Deficit Myth: Modern Monetary Theory and How to Build a Better Economy by Stephanie Kelton  

https://englundmacro.blogspot.com/2020/07/stephanie-kelton-en-av-mina-gurus.html