Bankers are considering ‘dropping money from the sky’ to prop up the economy
Jeremy Corbyn has also advocated a ‘people’s quantitative easing’ which has some similarities to helicopter money
Hazel Sheffield
Independent.co.uk
May 13, 2016
A daring new approach to solving the economic slump that has taken hold in Europe is gaining popularity in official circles.
Helicopter money refers to money figuratively “dropped from the sky”, or freshly created cash used to fund infrastructure projects or put directly into the hands of citizens.
Rather than being thrown from the sky, helicopter money might mean every UK citizen being credited with, say, £500 from the central bank straight into their current account.
Or government spending on new roads and railways financed by bonds that are then immediately bought by the central bank with newly created money and held until maturity.
Lord Adair Turner, former chairman of the UK finance regulator the Financial Services Authority, has urged serious consideration of helicopter money to rebalance growth in stuttering and highly indebted economies around the world.
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