The Deficit Myth

Outline

The Deficit Myth (2020) challenges the common belief that governments must manage their budgets like households. Stephanie Kelton explains the ideas of Modern Monetary Theory, arguing that countries that issue their own currency face limits set by inflation rather than by running out of money. She suggests that this view could change how governments think about spending on jobs, health, and public services.

• The book challenges the common belief that a government must manage its budget the way a household does.
• Stephanie Kelton explains the ideas of Modern Monetary Theory and builds her argument on them.
• Countries that issue their own currency face limits set by inflation, not by running out of money.
• Seeing the limit as inflation could change how governments think about spending on jobs, health, and public services.

Stephanie Kelton is an American economist and professor at Stony Brook University and one of the leading voices of Modern Monetary Theory. She has served as chief economist for the Democratic staff of the U.S. Senate Budget Committee and advised policymakers on economic issues. The Deficit Myth is her first book for general readers.