Helicopter Money Archives - Philosophy of Money

Functional finance and fiscal rules – a synthesis (Part II)

5th November 2018

Definitions of Money, Helicopter Money, Monetary Policy, Theory & Other Problems

Introduction A curious argument has broken out over the Labour’s proposed fiscal rule. Some advocates of functional finance, in particular, have been vociferous in their criticisms. There is scope for a consid...

Central bank ‘equity’ debunked

Eric Lonergan

23rd August 2018

Definitions of Money, Helicopter Money, Monetary Policy

17

The equity of a corporation is the difference between its assets and liabilities. Under typical accounting practice for central banks, transferring cash directly to households would result in a decline in their...

Raising rates is a stimulus

Eric Lonergan

4th October 2017

Helicopter Money, Monetary Policy, Theory & Other Problems

There are two broad categories of monetary policy instrument: 1) measures which are aimed at influencing market interest rates, and 2) transfers from the central bank to the private sector. ‘Conventional’ m...

More on Bitcoin (Part I)

Eric Lonergan

15th September 2017

Definitions of Money, Helicopter Money

1

Bitcoin proves that the 'interest' paid by central banks on bank reserves (IOR) is not an "interest rate" but a helicopter drop to banks. Imagine that Bitcoin came with an additional feature, that all holders o...

Intelligent money & valuing Bitcoin

Eric Lonergan

10th September 2017

Definitions of Money, Helicopter Money, Monetary Policy

12

The most significant innovation in Bitcoin is not blockchain, nor the fact that it is a non-state-backed electronic currency. It is truly ground-breaking because it is the first 'intelligent' money. An 'intelli...

The case for a new economics

Eric Lonergan

26th February 2017

Economic History, Helicopter Money, Monetary Policy, Theory & Other Problems

3

What’s really wrong with NAIRU Earlier this year, Matthew Klein at FT’s Alphaville, made a typically punchy and well-argued case for abandoning a cornerstone of the current macro policy framework - the NAIRU...

Has the Bank of Japan solved the ‘Piketty problem’?

Eric Lonergan

19th February 2017

Definitions of Money, Economic History, Finance & Asset Pricing, Helicopter Money, Monetary Policy

Japan’s unlikely re-distribution Why is the Bank of Japan (BoJ) trying to raise the rate of inflation? Taking account of its demographic profile, Japan's economic performance has been impressive by developed w...

Blogoff – The Curse of Cash

Eric Lonergan

19th November 2016

Definitions of Money, Helicopter Money, Monetary Policy, Theory & Other Problems

4

Rogoff's law - the opposite is usually true Punning on Kenneth Rogoff's surname is proving irresistible. He has just launched a new economics blog, which should prove rich in thought-provoking missives. Conf...

Where next? Monetary policy in a post policy-rate world

Eric Lonergan

9th October 2016

Helicopter Money, Monetary Policy, Money in Europe, Theory & Other Problems

4

Three new bazookas Recent shifts in policy direction by global central banks may prove to be profound. The Bank of Japan and the ECB appear to be conceding that further bond purchases and lower policy rates ar...

Fiscal subservience – a reply to Chris Sims

Eric Lonergan

16th September 2016

Definitions of Money, Helicopter Money, Monetary Policy, Money in Europe, Theory & Other Problems

Chris Sims is a deeply thoughtful economist and his paper at the recent Jackson Hole conference has rightly received a lot of attention, notably from Gavyn Davies, in the FT, and Paul Krugman. It is simultan...

Functional finance and fiscal rules – a synthesis (Part II)

Central bank ‘equity’ debunked

Raising rates is a stimulus

More on Bitcoin (Part I)

Intelligent money & valuing Bitcoin

The case for a new economics

Has the Bank of Japan solved the ‘Piketty problem’?

Blogoff – The Curse of Cash

Where next? Monetary policy in a post policy-rate world

Fiscal subservience – a reply to Chris Sims

Reviews of Eric’s book

CNBC: market sell-off is ‘noise’

Monetary policy & babysitting: why rates are so low, and ‘what’s next?’