A service of the

Content

Volume 53, January/February 2018, Number 1 · pp. 34-40

Articles

Helicopter Money: Should Central Banks Rain Money from the Sky?

Ansgar Belke

Ultra-low interest rates have become an endemic and potentially problematic characteristic of the global economy. Central banks in the euro area, the United States, Japan and Australia have bet on lowering interest rates to increase inflation, but despite their efforts, core inflation remains stubbornly below the desired two per cent. However, central banks have another tool at their disposal that has the potential to stimulate inflation: helicopter money.

Note

This Intereconomics article is available for free at this page after an embargo period of two years. Reading it before February 2020 is possible via SpringerLink or in the next library.