3 ms·
The primary argument against helicopter money is that it greatly accelerates the rate at which inflation manifests in the economy due to the increasing monetary
by jandrewrogers 4y ago
The primary argument against helicopter money is that it greatly accelerates the rate at which inflation manifests in the economy due to the increasing monetary supply, which causes more extreme disruption (the economy doesn't have time to adjust gradually).
If the inflation manifests slowly enough, the theory is that slower inflation combined with productivity growth can mitigate the major adverse effects and dislocations by allowing the economy to adjust at a much slower rate.