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

Stephanie Kelton emerged as a prominent voice in economic policy through an unconventional path that combined rigorous academic training with practical policy experience. After completing her undergraduate studies at California State University, Sacramento, she earned her master’s degree from Cambridge University and her PhD in Economics from The New School for Social Research, an institution known for its heterodox approach to economic theory.

Her academic career began at the University of Missouri-Kansas City, where she eventually became chair of the economics department. During this period, she developed her expertise in monetary theory and public policy, particularly focusing on the operational realities of modern monetary systems. This institutional environment proved crucial to her intellectual development, as UMKC served as a center for post-Keynesian economic thought and modern monetary theory MMT research.

Kelton’s transition from pure academic work to policy influence accelerated when she served as Chief Economist on the US Senate Budget Committee minority staff in 2015, working under Senator Bernie Sanders. This position provided her with direct insight into federal budgeting processes and policy formation. Later, during Sanders’ presidential campaigns in 2016 and 2020, she acted as an economic advisor, helping to shape progressive economic proposals and bringing MMT principles into mainstream political