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Helicopter Money: The New Form of Monetary Easing in the Eurozone?

Author

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  • Nikolaos A. Kyriazis
  • Emmanouil M. L. Economou

Abstract

Although unconventional measures by the ECB have been very extensive so as to fortify the Eurozone¡¯s financial system the question of whether more drastic measures are necessary, is at the forefront of newly aroused academic debate. This paper¡¯s main effort is to conceptualize helicopter drops in the Eurozone before hindsight in order to shed some light on how feasible are more drastic measures for the Eurozone and how they could further attenuate moral hazard problems. An early understanding of overt money financing will help in better driving monetary policy and emphasize whether the benefits of more and free money printing could bring about a heal for the wreckages of the EU membership status.

Suggested Citation

  • Nikolaos A. Kyriazis & Emmanouil M. L. Economou, 2017. "Helicopter Money: The New Form of Monetary Easing in the Eurozone?," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(3), pages 38-48, March.
    • Handle: RePEc:ibn:ijefaa:v:9:y:2017:i:3:p:38-48
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    References listed on IDEAS

    as
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    4. Joseph Gagnon & Matthew Raskin & Julie Remache & Brian Sack, 2011. "The Financial Market Effects of the Federal Reserve's Large-Scale Asset Purchases," International Journal of Central Banking, International Journal of Central Banking, vol. 7(1), pages 3-43, March.
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    More about this item

    Keywords

    unconventional monetary policy; helicopter money; European Central Bank;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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