The Big Idea
Stephanie Kelton argues that conventional macroeconomics mistakenly treats sovereign governments like household budgeters. As the monopoly issuer of the currency, the federal government does not need taxes or bond sales to finance spending. Its true economic constraint is real productive capacity and inflation, not financial insolvency. Reframing deficits as the non-government sector's net financial surpluses enables policymakers to fund vital public priorities like full employment without fear of national bankruptcy.
