The Fed says monetary financing might be needed. How long will the ECB deny it?

The Federal Reserve “might legitimately consider” using monetary financing of fiscal operations in “extreme circumstances”, when there is very weak growth or deflation, Fed Chairwoman Janet Yellen said at a press conference few weeks ago.

Lack of fiscal stimulus not an excuse for the ECB not to meet its target

In a meeting last Wednesday 13 July, MEPs raised concerns on the lack of impact of the ECB’s QE programme on the real economy and the risks involved in its policy. However, justifying the failure of QE because of the lack of fiscal stimulus is a misguided argument which should not be used as an excuse to overlook other monetary policy tools.

MEPs want the ECB to look at helicopter money

A group of 18 Members of the European Parliament have signed an open letter to Mario Draghi calling on the ECB to study the viability and implementation of helicopter money.

French coalition takes the QE for People campaign to a national level

Five french organisations supporting the QE for People campaign have formed a coalition to push the debate at the national level. They presented their ambitions at a press conference in Paris on May 31st.

Helicopter money: A cure for what ails the euro area?

The Research Service of the European Parliament (EPRS) has produced an interesting briefing paper, which summarizes the state of the debate on using 'Helicopter Money’ (or monetary financing) to stimulate the economy.

Riksbank's Deputy Governor Says Helicopter Money Should be Considered

What can monetary policy do if a new recession occurs? According to the central bank of Sweden's Deputy Governor, so-called helicopter money could be one possible answer.

Finland: Head of Trade Parliamentary Committee supports helicopter money

Kaj Turunen, the Chairman of the Commerce Committee of the Finnish Parliament recently wrote a blog post arguing that the European Central Bank (ECB) should use the helicopter money drops to increase demand in the Eurozone.

Germany: emerging voices raise interest for helicopter money

Despite the growing concerns in Germany over 'helicopter money' and other monetary policy alternatives, other voices are emerging to demand a serious debate about alternatives to quantitative easing.

Helicopter Money: ECB's vague response to MEP’s specific questions

With the ECB failing to meet its inflation target, and a serious possibility that another slowdown may make deflation an even greater risk, it is worrying and disappointing that Draghi is so evasive on the question of helicopter money.

The distinction between monetary and fiscal policy is clear

Believing that helicopter money would be a fiscal policy – a common critique against some forms of QE for People – is a logical fallacy, Eric Lonergan says.