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Coronavirus - The Moment for Helicopter Money?

Author

Listed:
  • Bogdan Andrei TILIUȚĂ

    (PhD student at Alexandru Ioan Cuza University of Iași, Faculty of Economics and Business Administration Iași, Romania)

  • Ioana Raluca DIACONU

    (assistant professor at Alexandru Ioan Cuza University of Iaşi, Faculty of Economics and Business Administration Iaşi, Romania)

Abstract

The coronavirus crisis has unquestionably been a challenge globally and felt like an economic and psychological shock caused by the high number of illnesses and deaths caused by the virus. The drastic measures of physical distance and isolation have led to major economic effects. In this regard, our paper is trying to answer to the question if the unconventional methods would be effective in saving the economy burdened by the pandemic crisis and especially if "launching money from the helicopter" strategy is viable for the economy. We presented a series of government measures taken by countries affected and the analysis of the literature of the concept of "helicopter money". At the same time, the article reveals the exposure of the economic consequences resulting from the application of this unconventional solution, meant to restart afflicted economies.

Suggested Citation

  • Bogdan Andrei TILIUȚĂ & Ioana Raluca DIACONU, 2021. "Coronavirus - The Moment for Helicopter Money?," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 12(4), pages 244-256, February.
    • Handle: RePEc:jes:wpaper:y:2020:v:12:i:4:p:244-256
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    References listed on IDEAS

    as
    1. Robert Jarrow & Sujan Lamichhane, 2020. "The Effects of Yield Control Monetary Policy: A Helicopter Money Drop to Financial Institutions," Quarterly Journal of Finance (QJF), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 1-38, March.
    2. Di Giorgio, Giorgio & Traficante, Guido, 2018. "Fiscal shocks and helicopter money in open economy," Economic Modelling, Elsevier, vol. 74(C), pages 77-87.
    3. Guillermo A. Calvo, 1991. "The Perils of Sterilization," IMF Staff Papers, Palgrave Macmillan, vol. 38(4), pages 921-926, December.
    4. Willem H. Buiter, 2003. "Helicopter Money: Irredeemable Fiat Money and the Liquidity Trap," NBER Working Papers 10163, National Bureau of Economic Research, Inc.
    5. Maarten van Rooij & Jakob de Haan, 2019. "Would helicopter money be spent? New evidence for the Netherlands," Applied Economics, Taylor & Francis Journals, vol. 51(58), pages 6171-6189, December.
    Full references (including those not matched with items on IDEAS)

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