Free exchange: Money from heaven

Posted: April 22, 2016 in economy
Tags: , ,

UK Only Article:  standard article Issue:  Can she fix it? Fly Title:  Free exchange Main image:  20160423_FND000_0.jpg Rubric:  To get out of a slump, the world’s central banks consider handing out cash “HELICOPTER money” sounds like an item on an expense claim at a hedge fund. In fact, it is shorthand for a daring approach to monetary policy: printing money to fund government spending or to give people cash. Some central bankers seem to be preparing their whirlybirds (and their printing presses). In March Mario Draghi, the president of the European Central Bank, described helicopter money as a “very interesting concept”. Ardent supporters see it as a foolproof way to perk up slumping economies. Yet helicopter money is a less radical departure from the norm than it sounds. What is more, it fails to remove the political constraints that have been the biggest drag on recovery. The evocative concept of helicopter money comes from Milton Friedman, the father of monetarism, who mused in 1969 that …

via Economic Crisis


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