Press Review: ECB urged to lavish "helicopter money" on consumers
The Financial Times reported about the debate of helicopter money
Die Financial Times berichtet über eine Initiative, die Fabio De Masi gemeinsam mit der Initative QE4People und bekannten Ökonomen ins Europaparlament gebracht habe. Er fordert die EZB auf endlich öffentliche Investitionen zu finanzieren. Denn das billige Geld landet wegen der Kürzungspolitik und somit der fehlenden Investitionsnachfrage nicht in der realen Wirtschaft.
"[...] Fabio De Masi, a German lawmaker from the Die Linke party, who has been pushing the ECB for months to consider alternative policy options, said that quantitative easing combined with austerity will only inflate asset bubbles as nobody invests despite ultra-low interest rates.
We hence need to spend directly into the economy. Funding public investment via EIB would be my preferred option but helicopter money to low income households would definitely work, he said.
The academic debate around helicopter money essentially a collective name for policies such as tax rebates and direct distribution of cash that put money directly into the hands of households has revved up in recent months amid stubbornly low euro area inflation. The idea won support from Adair Turner, the former chairman of the UK financial regulator, in his book Between Debt and the Devil. [...]"
The article "ECB urged to lavish helicopter money on consumers" by Jim Brunsden was published behind a paywall at Finanical Times Online.