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Will helicopter money be spent? New evidence

Maarten van Rooij () and Jakob de Haan ()

DNB Working Papers from Netherlands Central Bank, Research Department

Abstract: According to some economists, central banks should use 'helicopter money' (monetary financing of government expenditure or transfers to households) to boost inflation (expectations). Based on a survey among Dutch households, we examine whether respondents intend to spend the money received via such a transfer. Our findings suggest that only a small part of transfers will be spent and that such a transfer will hardly affect inflation expectations. Furthermore, whether transfers come from the central bank or the government hardly makes any difference. Finally, our results suggest that using helicopter money would have mixed consequences for public trust in the ECB.

Keywords: Helicopter money; central banking; ECB; trust; unconventional monetary policy (search for similar items in EconPapers)
JEL-codes: E52 E58 D14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
Date: 2016-12
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Persistent link: https://EconPapers.repec.org/RePEc:dnb:dnbwpp:538

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