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New York Times features new MMT brief!

Stephanie Kelton takes the Modern Monetary Theory (MMT) case about federal deficits and debt to the readers of the New York Times in a piece posted to the paper’s site today. We are suffering from a deficit obsession, according to her in this op-ed piece.

Objections to the tax plan’s unfairness and lack of realism about growth effects are enough to reject the plan. “But it would be unwise to oppose tax cuts, or any other legislation, simply because they add to the deficit.”

Kelton’s punchline begins:

“Politicians of both parties should stop using the deficit as a guide to public policy. Instead they should be advancing legislation aimed at raising living standards…”

Do check out  Kelton’s argument. It is good to see her get a chance to argue her case in the new column, which is entitled “How We Think about the Deficit Is Mostly Wrong.” The counterpart in my current research with Tai Young-Taft is of course the destabilizing effects of a deficit-targeting rule.


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