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The Corona Crisis - is this the time for Helicopter Money?

Author

Listed:
  • Marc C. Adam

    (Forum New Economy)

Abstract

This paper first describes the basic idea of Helicopter Money and the context in which it evolved from Milton Friedman’s famous 1969 essay until today. We discuss the challenges facing advanced economies, to which Helicopter Money has been proclaimed a possible solution. The paper provides a review of the recent debate around Helicopter Money and discusses the effectiveness of this tool in the current and future crises.

Suggested Citation

  • Marc C. Adam, 2020. "The Corona Crisis - is this the time for Helicopter Money?," Basic Papers 1, Forum New Economy, revised Apr 2020.
    • Handle: RePEc:agz:bpaper:2001
    as

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    File URL: https://newforum.org/wp-content/uploads/2021/07/FNE-BP01-2020.pdf
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    References listed on IDEAS

    as
    1. Olivier J Blanchard, 2019. "Public Debt: Fiscal and Welfare Costs in a Time of Low Interest Rates," Policy Briefs PB19-2, Peterson Institute for International Economics.
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    4. Olivier Blanchard, 2019. "Public Debt and Low Interest Rates," American Economic Review, American Economic Association, vol. 109(4), pages 1197-1229, April.
    5. Atif R. Mian & Ludwig Straub & Amir Sufi, 2020. "The Saving Glut of the Rich," NBER Working Papers 26941, National Bureau of Economic Research, Inc.
    6. Òscar Jordà & Moritz Schularick & Alan M. Taylor, 2017. "Macrofinancial History and the New Business Cycle Facts," NBER Macroeconomics Annual, University of Chicago Press, vol. 31(1), pages 213-263.
    7. Galí, Jordi, 2020. "The effects of a money-financed fiscal stimulus," Journal of Monetary Economics, Elsevier, vol. 115(C), pages 1-19.
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    9. Atif Mian & Ludwig Straub & Amir Sufi, 2020. "The Saving Glut of the Rich and the Rise in Household Debt," CESifo Working Paper Series 8201, CESifo.
    10. Moritz Schularick & Alan M. Taylor, 2012. "Credit Booms Gone Bust: Monetary Policy, Leverage Cycles, and Financial Crises, 1870-2008," American Economic Review, American Economic Association, vol. 102(2), pages 1029-1061, April.
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    12. Ben S. Bernanke, 2005. "The global saving glut and the U.S. current account deficit," Speech 77, Board of Governors of the Federal Reserve System (U.S.).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Helicopter Money; central bank; fiscal policy;
    All these keywords.

    JEL classification:

    • B2 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • H6 - Public Economics - - National Budget, Deficit, and Debt

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