Stephanie Kelton

Stephanie Kelton is an American economist and professor known for her work on Modern Monetary Theory (MMT). She is a leading advocate of MMT, which challenges conventional economic thinking about government deficits and debt.

Background & Career

• Education: She earned her Ph.D. in economics from The New School for Social Research.
• Academic Role: She is a professor of economics and public policy at Stony Brook University.
• Political Involvement: Kelton was the chief economist for the Democratic staff of the U.S. Senate Budget Committee and served as an economic advisor to Bernie Sanders during his 2016 and 2020 presidential campaigns.

Key Ideas & Contributions

Kelton argues that:

• Government spending is not constrained like a household budget—a government that issues its own currency (like the U.S.) cannot “run out of money” the way individuals or businesses can.
• Deficits are not inherently bad—they can be tools to boost employment and social welfare.
• Inflation, not debt, is the real constraint—MMT acknowledges that excessive spending can lead to inflation but contends that taxation and policy adjustments can help manage it.

Notable Book

• “The Deficit Myth” (2020): In this bestselling book, Kelton challenges mainstream economic beliefs about government debt and deficits, arguing that they should be viewed as policy tools rather than financial burdens.

Her work is influential in progressive economic circles and has sparked debates among economists and policymakers.