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I dunno about austerity. Seems the way it was done in the uk was wrong in that most of the weight fell on the poorest. Your description of helicopter money soun
by throwaway_pdp09 6y ago
I dunno about austerity. Seems the way it was done in the uk was wrong in that most of the weight fell on the poorest.
Your description of helicopter money sounds wrong - if it's so great why not do it more often. Inflationary at the very least. There have to be liabilities to it. It doesn't add up, do you have any references? TIA
- noir-york 6y ago> Your description of helicopter money sounds wrong - if it's so great why not do it more often. Because it undermines CB policy and leads to hyper inflation and ruining the economy. Some CBs are legally proscribed from engaging in helicopter money for good reason. > There have to be liabilities to it. You mean balance sheet liabilities? None. The money is recorded as an asset "receivable" on CB balance sheet. It does add up :D Japan has been doing it for a decade (for the wrong reasons unfortunately). For layman overview; most mainstream financial news sites like the FT and Bloomberg do a good job: https://www.bloomberg.com/news/articles/2020-05-05/how-long-feared-monetary-finance-becomes-mainstream-quicktake https://www.bloomberg.com/news/articles/2020-05-05/how-long-... https://www.ft.com/content/fd1d35c4-7804-11ea-9840-1b8019d9a987 https://www.ft.com/content/fd1d35c4-7804-11ea-9840-1b8019d9a...
- throwaway_pdp09 6y agoThanks, will read these tonight