Lianhe Zaobao helicopter money to bring the inevitable cost – China Network 工号9527为您服务�����

Singapore United Morning Post: "helicopter money" – the cost of the inevitable new Beijing in September 12, Singapore "Singapore United Morning Post" 12 journal article said that with the emergence of new concepts about the so-called helicopter money may form, whether its worth considering long debate the situation has changed, and the emergence of the helicopter money is in some economies landing doubt. Nothing has changed is to take a helicopter to throw money is a very bad idea. According to conventional wisdom, the helicopter money that the central bank to provide new printing cash, and not to record the corresponding assets or claims on its balance sheet. Article excerpts are as follows: in practice, helicopter money with quantitative easing is very similar to that in the two central bank purchases of government bonds on the secondary market, so as to inject liquidity into the banking system. The form of the helicopter’s money is to buy zero coupon government bonds that will not be paid, either because they are perpetual bonds, or because they are on display every time they expire. The Bank of Japan is basically doing that. The Bank of Japan governor Kuroda Higashihiko said that the budget deficit is not directly to the Bank of Japan fallback options for action. But he has implemented a policy of replacing government bonds on Japanese bank balance sheets at the end of the year, while increasing the number of government bonds on the central bank’s accounts. Years ago, many famous economists, including Berkeley Brad Williams (Brad DeLong) and former Federal Reserve Chairman Ben Bernanke (Ben Bernanke), announced that the helicopter money is a way to overcome deflation. After years of suffering from deflation, Japan has done so for decades. The idea behind this is that, by monetizing the deficit, the central bank has helped the government to finance growth, such as the growth of infrastructure, while also providing liquidity for deflation. It sounds too good to be true, because it is. Milton (Milton Friedman) often said that there is no free lunch economics. In fact, there are major drawbacks of helicopter money. Above all, the policy has undermined the credibility of the government to stabilize prices and the financial system through an unlimited amount of monetization of government debt. This is not a risk, but a certainty, because the historical experience of war finance has long been a clear proof of this. At the beginning of 1930s, under the leadership of finance minister Takahashi Yoshikiyoshi, Japan implemented a monetary deficit spending money to drive the economy out of deflation. But the effect is a little too good, resulting in strong inflation. Takahashi then tried to curb public deficits by cutting military spending. The military has taken under g, Takahashi was assassinated in 1936. After the first World War, the German currency broke out from the German public. In the United States, excessive printing of dollars for financing the civil war also led to high inflation. The list can go on. Supporters of some helicopter money, such as Turner, a former director of the UK’s financial services authority, said Adair相关的主题文章: