Fiscal shocks and helicopter money in open economy

Giorgio, Giorgio Di; Traficante, Guido

doi:10.1016/j.econmod.2018.05.005

Cited by 15 publications

(3 citation statements)

References 14 publications

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“…5.4.1 A feasible way of "helicopter money". After the 2008 financial crisis, some scholars proposed that the use of "helicopter money" can make the distribution of wealth more equitable, and the "helicopter money" policy will be more direct and effective than quantitative easing and conventional monetary policy to stimulate the economy [78,79]. However, in practice, the central bank has not found the best way to "spray helicopter money".…”

Section: E-cny Could Bring New Monetary Policy Toolsmentioning

confidence: 99%

A study on the influence mechanism of CBDC on monetary policy: An analysis based on e-CNY

Yang

Luo

2022

PLoS ONE

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This paper attempts to introduce central bank digital currency (CBDC) into the analysis framework of monetary policy, and studies the influence mechanism of e-CNY, central bank digital currency in China, on the monetary policy of the central bank from the aspects of money demand, money supply and monetary policy transmission mechanism. The research finds that e-CNY will have significant impact on monetary policy: (1) E-CNY will change the structure of money demand, speed up currency circulation, make central bank reserves more controllable and money supply more intelligent; (2) E-CNY will increase the volatility and expansion effect of currency multiplier to a certain extent; (3) E-CNY will dredge the transmission channel of monetary policy so as to improve the transmission effect of existing monetary policy tools. At the same time, based on the organic combination with structural monetary policy tools, it will achieve precise implementation of medium-term lending facilities (MLF), pledged supplementary lending (PSL), and it may bring new monetary policy tools. (4) E-CNY will make the intermediate target of monetary policy more controllable and reliable, and have a positive impact on the target of monetary policy through the smooth transmission of monetary policy channels. Therefore, it is necessary to strengthen the research on CBDC, give full play to the positive role of e-CNY in monetary policy, and improve the effectiveness of monetary policy.

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Section: E-cny Could Bring New Monetary Policy Toolsmentioning

confidence: 99%

A study on the influence mechanism of CBDC on monetary policy: An analysis based on e-CNY

Yang

Luo

2022

PLoS ONE

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“…Some have questioned why it was seen as morally unproblematic to put hundreds of billions of dollars, euros, pounds, etc. into the hands of financiers but morally questionable to put hundreds of millions into the hands of struggling households and businesses [38] , [39] , [40] .…”

Section: Governments the Financial Sector And A Green Recoverymentioning

confidence: 99%

Yes, there is enough money to decarbonize the economies of high-income countries justly and sustainably

Galvin

2020

Energy Research & Social Science

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This year a number of factors have converged to substantially increase the impetus for a credible, effective programme to radically decarbonize the economies of high-income countries, particularly in the EU but also more broadly, in ways that would reduce economic inequality and are just and sustainable. These include the European Commission’s European Green Deal, Coronavirus Recovery Plan and revamped Hydrogen Strategy; international calls for a green, sustainable and just coronavirus recovery; a global revival of Keynesian supply-side economics; and increasing interest in direct central bank funding of government stimulus programmes. In this essay I offer a first attempt to draw these elements together to suggest what might be a coherent strategy for action, at least for countries with stable, resilient currencies. One of the key elements would be for central banks to finance their governments’ decarbonization programmes directly by buying government bonds and holding them in perpetuity as insurance against misallocation of funds. The losers in such a strategy would be elements in the finance sector which have come to rely on virtually free bailouts and handouts from central banks via quantitative easing programmes. Resistance to the proposed strategy would probably be fierce from these quarters.

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“…These analyses all use models of a closed economy, however. An endogenous evolution of net foreign assets and the world interest rate can, for example, be found in models with an OLG structure (see, for example, Gale, 1971, Ferrero, 2010, Di Giorgio and Nistic, 2013, or Di Giorgio and Traficante, 2018, for a discussion). In these models, savings are a result of insuring against longevity, while they are a result of insuring against unemployment in our model.…”

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confidence: 99%