The Economics of Helicopter Money

Pierpaolo Benigno and Salvatore Nisticò

No 14555, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: An economy plagued by a slump and in a liquidity trap has some options to exit the crisis. We discuss helicopter money and other equivalent policies that can reflate the economy and boost consumption. Traditional helicopter money, via the joint cooperation between the treasury and the central bank, depends critically on the central bank fully guaranteeing treasury's debt. We show that the central bank can do helicopter money on its own, without any treasury's involvement.

Date: 2022-03
New Economics Papers: this item is included in nep-mac and nep-mon
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Related works:
Working Paper: The Economics of Helicopter Money (2020)
Working Paper: The Economics of Helicopter Money (2020)
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