Helicopter money: large-scale cash handouts are no panacea for economies As the Indian variant threatens a third wave of coronavirus and government deficits reach new heights, the notion of so-called helicopter money has been touted as a panacea for Central Banks. Economists on payroll are falling over themselves to claim it is the ultimate weapon to boost economist growth and avoid deflation. Trouble is, it [...]
There is a difference between helicopter money and quantitative easing Many investors have it wrong. This round of central bank alchemy starring Jay Powell is not Ben Bernanke the Redux… Yes, on both occasions central bankers rode in on their white horses and saved the day by slashing rates, buying fixed income securities, flattening volatility and offering bazooka style forward guidance, and for that they deserve [...]