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It's from a Milton Friedman paper, "The Optimum Quantity of Money": "Let us suppose now that one day a helicopter flies over this community and drops an additi
by rufus_foreman 5y ago
It's from a Milton Friedman paper, "The Optimum Quantity of Money":
"Let us suppose now that one day a helicopter flies over this community and drops an additional $1,000 in bills from the sky, which is, of course, hastily collected by members of the community. Let us suppose further that everyone is convinced that this is a unique event which will never be repeated."
His point was that the Fed can generate output (and inflation) when the economy is running below potential.