Book Review: "The Deficit Myth: Modern Monetary Theory and the Birth of the People's Economy"

Abstract

Stephanie Kelton’s persuasive and clever new book _The Deficit Myth_ does a very good job explaining Modern Monetary Theory to new readers, but however fun the book, it is utterly wrong. The standard accounting is correct: it actually costs something when the government spends money. Having an unfettered printing press isn't a magic wand and doesn’t give us more options. It merely gives the Fed greater license to cause boom/bust cycles and redistribute wealth to politically connected insiders.