What are some of the key ideas of economist Stephanie Kelton?

Stephanie Kelton, an American economist, has contributed to the field of macroeconomics and is associated with Modern Monetary Theory (MMT).

Here are some of the key ideas of economist Stephanie Kelton:

• Modern Monetary Theory (MMT): MMT is a heterodox economic theory that argues that the government can create money without causing inflation, as long as it does not run out of willing lenders. Kelton is a leading proponent of MMT, and she has argued that MMT could be used to finance government spending on social programs and infrastructure.
• The fiscal theory of the price level: The fiscal theory of the price level is a theory that argues that the price level is determined by the government's fiscal policy, rather than by the quantity of money in circulation. Kelton is a proponent of the fiscal theory of the price level, and she has argued that it could be used to justify government spending on social programs and infrastructure.
• The role of the state in the economy: Kelton argues that the state has a central role to play in the economy, and that it should be responsible for providing public goods, such as education and healthcare, and for regulating the economy. She has argued that the state should not be afraid to run deficits, as long as it does not run out of willing lenders.
• The need for a new economic paradigm: Kelton argues that the current economic paradigm is broken, and that we need a new paradigm that is based on MMT. She has argued that MMT could be used to create an economy that is more just and equitable.

Here are some of her notable works:

• The Deficit Myth: Modern Monetary Theory and the Birth of the People's Economy (2020): This book is a classic work on MMT that introduces the concepts of the fiscal theory of the price level, the role of the state in the economy, and the need for a new economic paradigm.
• The People's Economy: Restoring Control of Our Money, Our Jobs, and Our Democracy (2022): This book is a sequel to The Deficit Myth that discusses the implications of MMT for the economy and for democracy.
• MMT in Action: Modern Monetary Theory in the Age of COVID-19 (2020): This book is a collection of essays that discusses the application of MMT to the COVID-19 pandemic.

Kelton's ideas, particularly her contributions to Modern Monetary Theory, have sparked considerable debate and discussion in the field of economics. Her work has challenged long-standing economic orthodoxy and called for a reconsideration of fiscal policy, government intervention, and the role of monetary policy in managing the economy.