We love the smell of monetary napalm in the morning
“The helicopter is there because she is making the case for helicopter money – quantitative easing, but carried out by placing money directly into people’s accounts. This is direct money-printing and, she argues, it could jump-start the economy in the way that QE as actually practiced has failed to do over the last decade. Rather than inflate asset prices, she suggests that this measure could actually stimulate the economy.”
USAGOLD note: Helicopter money is one potential solution to the problems raised by Richard Koo in the previous post – the one famously proposed years ago by none other than Ben Bernanke and the one at the heart of the MMT movement. Of course, if the program works, we might end up with the problem at the opposite end of the spectrum. . . . .runaway inflation.