W2 academic lecture - Stephanie Kelton: Rethinking fiscal policy

Rethinking Capitalism undergraduate module
Week 2: Rethinking fiscal policy by Stephanie Kelton

This week's lecture by Stephanie Kelton will focus on fiscal policy: government decisions on spending and raising money, how it manages the public debt and how this effects economic growth.

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The Rethinking Capitalism undergraduate module provides students with a critical perspective on these ‘grand-challenges’ and introduces them to new approaches to economics and policy which challenge standard thinking.

The module draws on the book “Rethinking Capitalism”, edited by Mariana Mazzucato (Director of IIPP) and Michael Jacobs (Visiting fellow in the UCL School of Public Policy). It features guest academic lectures from some of the chapter authors. These academic lectures are combined with presentations by policy makers working at the frontline of the issues under discussion, including from the Bank of England, the UK Treasury and government departments dealing with innovation and climate change.

[Notecrusher]

No dislikes! Should be mandatory viewing for all citizens. No one explains government finance better than Stephanie K.

[floridaman]

Still the best MMT/heterodox Economist! Dr. Kelton, your lecture in Rimini in '12 changed my life, thank you!

[genecat]

Like Dorthy with her ruby slippers in the Wizard of Oz, we've always had the capability to go where we wanted economically, but it took the crisis of the Great Recession and the subsequent success of the action to convince our economic visionaries that MMT really could revolutionize fiscal policy.

[realtychek]

Excellent! Very simply explained so any one can understand this, and how badly the public have been conned by the Gov (faux) 'debt' myth.

Great sound and video recording. Well done and big thanks to UCL and Mariana for organising this :)

[Noa-Wuff]

This is so shocking that I need to check its true from other sources.
I love this series, this should be taught at school, I'm sharing this, I wish I had a version in Spanish instead of English.

[tonywilson]

*ITS JUNE 2022*
And this is even more valid now that it was when she gave this lecture.

[Juanijia]

We should address the problem of developing countries, which are not currency issuers and usually have debt constraints. How can we rethink fiscal policy for them?

[fractalnomics]

Does she lecture flight theory for pilots too. I would like to see that one.

[raykirkham]

I listened to this entire presentation and compliment the speaker for a cute fairy story. It was beautifully presented but it still regards the physical economy and the impact of technology and the impact of pollution and environmental destruction as externalities. So it does explain how people have been behaving but does not describe the final effects of the economy on the Earth.

[dannywindham]

Professor Kelton our future Fed chair or treasury secretary she would be great at either one

[thomasd]

25:39 - What is the USA-FED-GOV (or National Debt) ?
25:43 - The USA-FED-GOV (or National Deficit) is the year (or annual)

[jimmuncy]

MMT can save our nation. People still think about the federal budget as if we were still on the gold standard, and that it should be balanced like a household budget. That attitude has been wrong since 1971. MMT is the only school of economics that has figured out how to vastly improve living standards in America; even Keynesianism is too limited. It's a new day with a new way, but not enough people have seen the light. Professor Kelton is doing yeoman's work trying to spread the good news. Admittedly, it does takes a psychological paradigm shift to grasp MMT's foundations, but when you do, it's liberating: We can improve things; we don't have to live like refugees with millions chronically employed and innumerable economic opportunities missed or shortchanged.
I've been looking for such a solution since 1972, but didn't find it till 2020. I'm not an economist and didn't know where to look, and I thought all the old options were the only ones. For me, economic heaven has come down to Earth: We don't need socialism or vulture capitalism; we just need MMT.

[stevelacroix]

This should be a talk for every American HS student...repeated every year!

[robertomartinez]

Professor Kelton Who is the score keeper for the Euro?

[juhanleemet]

mission oriented goals for budget, how very logical, why is it not the norm?

[jerrydoiron]

problem with large deficits is that it went to the one percent

[davidwilkie]

Those are the answers to questions that you have been unwilling to ask yourself because of what it means about actual government decisions.

[magpiecity]

"You need a new bird in this aviary, because there are things these dodos don't see"

[jeffgriffiths]

I'm generally a supporter of MMT, but doesn't fractional reserve banking make it possible for the gov to collect more in taxes than were spent into the economy?

Private banks also play a role in expanding the money supply to private people and businesses. it's not just the central banks.

However, I suppose the "real" amount of money in the economy is what the private banks hold as deposits, not loans.

[Herbwise]

I usually explain that we use people and businesses to balance the govt budget instead of using the budget to balance the economy for people and businesses.