Will "helicopter money" succeed "magic money"?
The European Central Bank (ECB) has succeeded in cushioning the repercussions of the Covid crisis by injecting some 2,000 billion euros into the economy, via debt buybacks from states and companies.
While this unprecedented action avoided a major financial crisis, it did not, on the other hand, make it possible to achieve the objective set by the central bank: to stimulate inflation to a level close to 2%, a sign of dynamic economic activity.
Admittedly, the price increase in May reached this threshold, but it would only be a temporary phenomenon linked to the reopening of closed services, according to the ECB.
This forecasts only 1.5% inflation for 2022 in the euro zone and 1.4% the following year.
Read also:
Should we fear a return of inflation?
Hence the return of the unconventional idea of “helicopter money” to say the least.
By this process, theorized in 1969 by the American economist founder of the Chicago school Milton Friedman, a central bank would distribute
This article is for subscribers only.
You have 80% left to discover.
To cultivate your freedom is to cultivate your curiosity.
Continue reading your article for € 1 the first month
I ENJOY IT
Already subscribed?
Log in