Modern Monetary Theory: a solution in search of a problem

By Adam Triggs
Updated July 1 2021 - 5:28pm, first published August 31 2020 - 5:00pm
Kelton says budget deficits are not necessarily bad, and governments should spend more when the economy is weak. Picture: Shutterstock

American economist and adviser to Bernie Sanders, Stephanie Kelton, has created a stir in Australia with her new book on modern monetary theory: The Deficit Myth. But while MMT is gaining traction with some politicians, journalists and investors - and even the occasional comedian - support hasn't shifted among one notable group: economists.