Chiedere alla Bce di distribuire denaro a pioggia è un sintomo dell’inefficacia delle normali regole di politica fiscale. Il principio del bilancio in pareggio ha finito per ostacolare ogni ragionevole tentativo di gestire il disavanzo in funzione anti-ciclica. Soluzioni nuove per salvare l’Europa.
Tag: Adair Turner
Helicopter money: Too confused to be helpful
In his piece on helicopter money, Lord Adair Turner seemed to argue that:
1) The money multiplier provides the needed boost to expansionary fiscal policy, yet this boost could generate inflation.
2) The risk of inflation could be managed by raising reserve requirements as needed.
Both statements are incorrect.
And this is the slightly expanded version of my Letter to the Financial Times (FT.COM published an abridged version)
In ‘The helicopter money drop demands balance’ (May 22), Lord Adair Turner defends the notion that bigger fiscal deficits are needed to end the current stagnation, but leaves one question unanswered: Why should a money-financed deficit be more powerful than a traditional debt-financed deficit?