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.
Turunen suggests that with a sum ranging from 500€ to 2000€ injected to citizens bank accounts, the ECB would meet its inflation target sooner than with its current policy stance. "Money should be targeted in a way that stimulates consumption, that is, low-income groups. This actually would increase demand, which would help to achieve 2% inflation. It would also create business investment needs and therefore new jobs. Helicopter Money would reduce to some extent the value of the euro, which would increase the international competitiveness of the eurozone once again."
In addition this kind of helicopter money would become cheaper to central bank than conventional QE, claims Turunen. He hopes that Bank of Finland would endorse the idea of helicopter money in the ECB’s meetings.
Turunen is member of the Finns Party. He is so far the first Finnish politician to publicly favor the idea of the helicopter money.