The Deficit Myth and Modern Monetary Theory – latest podcast episode

I’ve recorded some thoughts on Stephanie Kelton’s best-selling book The Deficit Myth which is popularising so-called Modern Monetary Theory:

The Deficit Myth and Modern Monetary Theory – initial views

In my recorded conversation with my Adept Economics colleague Ben Scott, I referred extensively to RBA Governor Philip Lowe’s great speech last month in which he demolished the case for MMT:

COVID-19, the Labour Market and Public Sector Balance Sheets

I’ve previously chatted about MMT with podcast guests such as Joe Branigan – e.g. check out Paying for the coronavirus rescue message.

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2 Responses to The Deficit Myth and Modern Monetary Theory – latest podcast episode

  1. says:

    Hi Gene,

    I am just confused that Phillip Lowe would think that the Reserve Bank could not just print more money to finance itself if it needs to? As MMT allows for this and also admits that inflation must be watched, all they are saying is to focus on full employment and watch out for inflation by focusing on not pushing the economy past full employment.

    Regards, Alan

    • Gene Tunny says:

      Thanks for the comment, Alan. Yes, that would be the MMT argument. I want to dig a bit deeper into what Phil Lowe said in a future post/episode and will endeavour to discuss that very point.

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