Helicopter Drops Would Work, but “Helicopter Drops” Might Well Fail
September 20, 2011 at 07:21 AM EDT
Steve Waldman has a post discussing the problems involved in making monetary stimulus effective. He ends up by claiming that “helicopter drops” would certainly work, but the Fed isn’t authorized to do them: To the degree that our problem is on the demand-side and stems from private-debt-overhang-induced risk aversion or a desire to hoard money, [...]