1/ The reason investors should read @StephanieKelton’s The Deficit Myth is because MMT has entered The Overton Window. Regardless of your views, MMT-inspired policies are suddenly politically possible. You’ll want to have an informed opinion on the topic. mackinac.org/OvertonWindow
2/ The book is an excellent primer because it focuses on core MMT economic theory rather than on “political MMT”. It is an argument for how MMT claims reality works, not an argument for the policy preferences of MMT adherents. Plus it is extremely well written for a lay audience.
3/ One of the most important debates right now is how the scale of government fiscal stimulus will impact inflation in the years ahead. We *know* that classical economics has failed to explain inflation for a decade.
4/ MMT offers an alternative model of inflation that does appear to explain the historical reality. Is it correct? We don’t know. But when existing models fail, the only sensible thing to do is explore alternatives.
5/ The Fed does not agree with MMT, but they have also lost confidence in the old models of inflation. They are now going to be focused on observed inflation, rather than the inflation predicted by failed models. bloomberg.com/opinion/articl…
6/ There is no doubt we are engaged in a dramatic real time experiment. The outcome of the massive surge of spending and the path of inflation will reverberate through economic policy for decades. You’re going to want to know the terms of the debate. amazon.com/Deficit-Myth-M…
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