This way of framing the problem also provides an administrative alternative for the ECB to effect cash transfers. Rather than posting checks to households, it could launch an ATLTRO – a TLTRO for all. Under this facility, any Eurozone citizen can borrow from the ECB up to a maximum of, for example, 1000 euros, at infinite maturity and at a zero nominal interest rate. There is no need for collateral – infinite maturity loans have no credit risk.
No need to lend just give money to people. Emoney provision on behalf of the central bank would permit this while creating a risk free payment system. The pmt system is systemic therefore the central bank should be providing emoney.
Thanks CMA. The advantage of ATLTRO may be purely administrative/legal.
ATLTRO may also be better than heli’s where fiscal and monetary policy coordination are required IMO because it wont undermine CB indepedance.