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What Is Helicopter Money, Anyway? – New Economic PerspectivesNew Economic Perspectives

Excellent piece all around, but the following struck me as the best definition of monetary and fiscal policy differences I’ve seen yet:

It seems much clearer to simply say that (a) the act of creating a deficit—raising the net financial wealth of the non-government sector—is fiscal policy, and (b) the act of announcing and then supporting an interest rate target with security sales (or purchases, or interest on reserves)—which has no effect on the net financial wealth of the non-government sector—is monetary policy. In the case of (a), whether the Treasury or the Fed cuts the checks, it’s fiscal policy, and with (b), whether the Treasury or the Fed sells securities, it’s monetary policy.

The rest of the article has more juicy stuff:

via What Is Helicopter Money, Anyway? – New Economic PerspectivesNew Economic Perspectives.

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