In search of a new economics for Covid-19 era | Letters


John Marsh on modern monetary theory and David Cockayne on doughnut economics and art

The Guardian has done us all a service with this editorial (The Guardian view on Covid-19 economics: the austerity con of deficit hysteria, 14 July). I am reading Stephanie Kelton’s book and I believe that it may start a revolution in economic policy.

Prof Kelton’s concern is not the government financial deficit – the balance between taxes and government spending – but the deficits and imbalance in the real economy such as unemployment and housing shortages. Modern monetary theory (MMT) suggests that governments which issue their own money cannot “go broke”.

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