The World's Best Book Summaries
What are structural adjustment loans? Why does economist William Easterly think they are a huge failure? Structural adjustment loans are economic reforms that aim to transition a country to a free-market economy—but they come with many catches. In the end, these loans usually end up putting a struggling country into more debt. Keep reading to learn why structural adjustment loans are not the answer to economic reform.
Why does inflation occur? Is inflation a natural occurrence or is it caused by external forces? In her book The Deficit Myth, Stephanie Kelton—a former Senate Budget Committee staffer and 2016 campaign adviser to Bernie Sanders—discusses inflation in depth. Kelton believes that inflation occurs naturally and is not a result of government policies. Continue reading to learn about the causes and effects of inflation.
Why do we have to pay taxes? If monetary sovereigns can print their own money, then why do they still need tax money? Are there other reasons for tax other than to pay the government? According to modern monetary theory, nations that are monetary sovereigns can print more money whenever they need it. However, according to economist Stephanie Kelton, that doesn’t mean that taxes don’t serve a purpose. Learn why a believer of MMT believes taxes are still important.
Is the U.S. foreign debt a problem? Does China have economic leverage over the United States? Despite popular belief, economist Stephanie Kelton says that foreign debt is not a problem for the United States. In fact, it may be China that has the real debt crisis. Here’s why the United States shouldn’t worry about foreign debt.
Is a trade deficit a good or bad thing? Could there possibly be benefits to having a trade deficit? According to Stephanie Kelton, an economist and believer in modern monetary theory, the United States trade deficit is actually a strength rather than a weakness. She believes that the trade deficit puts the United States in a position of power because other countries rely on its currency. Here’s a more in-depth look at the U.S. trade deficit from The Deficit Myth.
What is Stephanie Kelton’s The Deficit Myth about? How was the book received by critics? In The Deficit Myth, economist Stephanie Kelton—a former Senate Budget Committee staffer and 2016 campaign adviser to Bernie Sanders—writes that nearly all of the public discourse about national debts and deficits gets the facts entirely wrong. Naturally, a controversial stance like this attracted a lot of criticism. Continue reading for a brief overview of The Deficit Myth.
What is a monetary sovereign? Why does Stephanie Kelton, the author of The Deficit Myth, believe monetary sovereigns can print unlimited amounts of money? A monetary sovereign is a country that is the sole issuer of its own currency, and its currency isn’t tied to a finite object or another country’s currency. Believers of modern monetary theory such as Kelton argue this means they can never be in debt because they can always print more money. Continue reading to learn more about monetary sovereignty and for criticism of their arguments.
Are you looking for an explanation of modern monetary theory? What criteria must a nation satisfy to be considered a monetary sovereign? The short version of modern monetary theory is that there are some nations (like the United States) that are unconstrained in their power to spend money because their currencies satisfy certain criteria. MMT is controversial and is criticized by economists. Continue below if you want to learn more about modern monetary theory, explained with analysis.
Is national debt a problem in the United States? Why does Stephanie Kelton believe that government officials are promoting debt hysteria? Stephanie Kelton is an economist, a believer of modern monetary theory, and the controversial author of The Deficit Myth. In her book, she argues that there is no threat from the national debt and that conversations surrounding the United States debt are full of fearmongering. Continue reading to learn why Kelton thinks the United States could wipe its debt at any time.
What caused the United States subprime mortgage crisis in 2008? How did the mortgage meltdown spill out into a global financial crisis? The United States subprime mortgage crisis was years in the making. However, few could anticipate one of the biggest financial crises in history—in spite of the warning signs. At its heart, was a relatively new class of asset: the mortgage-backed security. In this article, we’ll discuss how mortgage-backed securities caused the biggest financial crisis in the eight preceding decades.