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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
    1. Frank van Lerven, 2016. "Quantitative Easing in the Eurozone: a One-Year Assessment," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 51(4), pages 237-242, July.
    2. 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.
    3. Eric T. Swanson, 2011. "Let's Twist Again: A High-Frequency Event-study Analysis of Operation Twist and Its Implications for QE2," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 42(1 (Spring), pages 151-207.
    4. Peter Karadi & Mark Gertler, 2012. "Large Scale Asset Purchases as a Tool of Monetary Policy," 2012 Meeting Papers 904, Society for Economic Dynamics.
    5. Mark Gertler & Peter Karadi, 2013. "QE 1 vs. 2 vs. 3. . . : A Framework for Analyzing Large-Scale Asset Purchases as a Monetary Policy Tool," International Journal of Central Banking, International Journal of Central Banking, vol. 9(1), pages 5-53, January.
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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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