Helicopter Drops and Liquidity Traps

Manuel Amador and Javier Bianchi

No 31046, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We show that if the central bank operates without commitment and faces constraints on its balance sheet, helicopter drops can be a useful stabilization tool during a liquidity trap. With commitment, even with balance sheet constraints, helicopter drops are, at best, irrelevant.

JEL-codes: E31 E52 E58 E61 E63 (search for similar items in EconPapers)
Date: 2023-03
New Economics Papers: this item is included in nep-ban, nep-cba, nep-des, nep-mac and nep-mon
Note: EFG IFM ME
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Working Paper: Helicopter Drops and Liquidity Traps (2023)
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