3 ms·

For one, it doesn't add to the debt.

• ajross 7y ago
  It does, though. Or neither does, maybe. "Debt" in macroeconomics isn't a zero sum thing. The central bank lifting in money creates inflationary pressure instead of a negative number in the general fund transaction log, so to counteract that the promise is always made via whatever mechanism is chosen ("helicopter money" is a bewildering variety of distinct tricks) to "buy back" the stuff you dropped later on, to prevent the runaway inflation scenario. So in practice, it's no different than spending with concomitant bond issue, which also promises to pay the money back. And is also an inflation pressure if the market decides the promise isn't worth the nominal interest rate.
  • ikeboy 7y ago
    I thought the whole point of helicopter money is because you want inflation and shouldn't be buying it back later.