GettyPolicy and business circles these days buzz about something called modern monetary theory (MMT). Whatever politicians and some in the media claim for this theory, it does have rigorous foundations. On the contrary, Prof. Kelton’s work draws heavily on the theory carefully expounded over 90 years ago by the great economist John Maynard Keynes. But also like Keynes, her MMT theory adds an important nuance. On monetary policy, Kelton’s MMT does claim that sometimes increasing the flow of money can support deficits without harm.

Source: Forbes May 28, 2019 13:41 UTC