Inflation is the watchword on everyone’s minds right now. Whether it’s Sen. Joe Manchin’s excuse not to support a slimmed down Build Back Better, or President Biden’s trip to the Middle East to try to ease pain at the pump—all of it comes back to inflation. Meanwhile, the Federal Reserve is lashing the economy by raising interest rates to bring inflation down.
Professor Stephanie Kelton is an expert in Modern Monetary Theory, and her book on the topic “The Deficit Myth” was a New York Times Best Seller. She argues that rather than use monetary policy to bring down inflation, we should instead be using government’s power to tax. This would be more effective and less painful for the poorest Americans. We talked about MMT, inflation, and more.