STAFF NEWS & ANALYSIS
Beware of the Chaos of Helicopter Money
By Daily Bell Staff – May 11, 2016
Indian central bank governor says helicopter money no panacea … Indian Central Bank Governor Raghuram Rajan said on Tuesday that he had doubts “helicopter money”, or free cash given directly to citizens to stimulate growth, would be successful if adopted by developed world policymakers. -Reuters
Raghuram Rajan has come out against helicopter money and this is probably to be expected from India’s version of US central banker Paul Volcker.
Both men hiked interest rates hard to halt rapid price inflation. In Rajan’s case, the rupee was depreciating at 10 percent per year.
Now the rupee has stabilized and Rajan gets credit for monetary success and for working closely with India’s Ministry of Finance.
Rajan is surely correct about central bank helicopter money but as the head of…