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

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

A New York Times Bestseller
The leading thinker and most visible public advocate of modern monetary theory -- the freshest and most important idea about economics in decades -- delivers a radically different, bold, new understanding for how to build a just and prosperous society.


Stephanie Kelton's brilliant exploration of modern monetary theory (MMT) dramatically changes our understanding of how we can best deal with crucial issues ranging from poverty and inequality to creating jobs, expanding health care coverage, climate change, and building resilient infrastructure. Any ambitious proposal, however, inevitably runs into the buzz saw of how to find the money to pay for it, rooted in myths about deficits that are hobbling us as a country.


Kelton busts through the myths that prevent us from taking action: that the federal government should budget like a household, that deficits will harm the next generation, crowd out private investment, and undermine long-term growth, and that entitlements are propelling us toward a grave fiscal crisis.


MMT, as Kelton shows, shifts the terrain from narrow budgetary questions to one of broader economic and social benefits. With its important new ways of understanding money, taxes, and the critical role of deficit spending, MMT redefines how to responsibly use our resources so that we can maximize our potential as a society. MMT gives us the power to imagine a new politics and a new economy and move from a narrative of scarcity to one of opportunity.

Title:The Deficit Myth: Modern Monetary Theory and the Birth of the People's Economy
ISBN:9781541736184
Format Type:

    The Deficit Myth: Modern Monetary Theory and the Birth of the People's Economy Reviews

  • David Wineberg

    We’ve wasted a century looking at government as if it were a family or a business. It isn’t. As the monopolist controlling American currency, the government doesn’t ever have to worry about runn...

  • Peter Tillman

    I feel comfortable rating this one at 1-star, "no possible interest" based on economist John Cochrane's review at the WSJ, aptly titled "Years of Magical Thinking": https://www.wsj.com/articles/the-de...

  • Milind Hegde

    I found this book annoying to read. The central tenet of modern monetary theory (MMT) is that a monetarily sovereign government, like the United States and maybe a few more, creates currency and so ca...

  • Gea

    I'm not an economist, or even someone who is savvy about the topic of deficits. One thing I have learned over the years is that conservative politicians rail about the deficit - but only when the othe...

  • Mehrsa

    I've been following Stephanie Kelton for some time and I think she's one of the smartest people around. The ideas in here are worth reading for anyone sucked into the deficit myth--the idea that we ha...

  • Zoltan Pogatsa

    This book is probably gonna be the Piketty of 2020!Very easy to read, lots of good examples, simple enough language for any intelligent person to understand. Kelton, Bernie Sanders' economic advisor, ...

  • Chaitanyaa From Teatime Reading

    As I made my way through The Deficit Myth, I had to stop numerous times, because it felt like my political and ideological underpinnings were being shaken at their cores. The idea that government spen...

  • Debbie Notkin

    Stephanie Kelton is an economist, an economics professor, and a proponent of modern monetary theory (MMT). I've been interested in MMT for a while, and I read a chapbook by Warren Mosler, often descri...

  • Jeff Kaye

    The Deficit Myth is an important game-changer in the world of economics. My university degree was in this field, but in the days of Milton Friedman and monetarism there was no understanding of the cri...

  • Eric

    TL;DR The Deficit Myth by Stephanie Kelton explains a revolutionary finance theory in easy to understand terms. It places the focus of government finances back where it belongs…on helping citizen...