Stephanie Kelton is part of a new generation of economists trying to figure out how things work in our grim, new world.
Most Canadian politicians agree on deficits.
Most say that at times of crisis governments may have to spend more than they take in.
But common political wisdom goes on to say that once this crisis is passed, governments should move as quickly as possible to get their fiscal houses in order.
That’s what Prime Minister Stephen Harper, a Conservative, says. It’s also what Ontario Premier Kathleen Wynne, a Liberal, says.
Tom Mulcair’s federal New Democrats are not much different.
Parties may disagree on timing. But there is a consensus that, in general, government deficits are to be avoided.
Which is what makes Stephanie Kelton so interesting. She is chief economist for the Democratic minority on the U.S. Senate budget committee. That’s an influential post.
But she’s also a prolific advocate for a newish school of economic thought — sometimes called modern monetary theory — that is remarkably blasé about debt and deficit…..