THREAD
We should talk about Functional Finance. Abba Lerner put forward the approach in the 1940s. He explicitly offered it as an alternative to the more timid pump-priming approach expounded by people like Alvin Hansen. Here’s the seminal paper. https://t.co/ycbYTFIWfk pic.twitter.com/1C4ao1QzaS

— Stephanie Kelton (@StephanieKelton) August 23, 2019

See all of Kelton’s 2019 TweetStorm HERE

Functional Finance and the Debt Ratio
“This five part series will explore at length (warning!) and in detail (another warning—wonk alert!) the MMT perspective on the debt ratio and fiscal sustainability. While the approach suggests a macroeconomic policy mix and strategies for both fiscal and monetary policies that most neoclassical economists currently believe are unsustainable, ultimately the MMT preference for a significant role for fiscal policy in macroeconomic stabilization is shown to be consistent with traditional neoclassical views on fiscal sustainability.”
• Part I • Part II • Part III • Part IV • Part V
— Scott Fullwiler New Economic Perspectives Dec 2012 – Jan 2013