Stephanie Kelton on Modern Monetary Theory's Goals for Full Employment and Government Deficits

­Welcome to Capital Account. When speaking about fiscal cliff solutions, anti-tax advocate Grover Norquist said President Obama has no more reason to increase taxes today than he did two years ago, when he extended the Bush tax cuts. He told CNBC’s Squawk Box "Raising taxes is always bad for the economy… Tax increases are what's done instead of reforming government." But does the government need to tax and borrow in order to spend? Or is the government less constrained in its spending than many believe, and do budget deficits matter much less right now than we think? We talk to Stephanie Kelton, Chair of the Economics department at University of Missouri-Kansas City, about the economics behind Modern Monetary Theory (MMT).

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