Seminar paper from the year 2018 in the subject Economics – Macro-economics, general, grade: 1.0, Jacobs University Bremen g Gmb H, language: English, abstract: The so-called ‘helicopter money’ is discussed as a direct alternative to monetary policy instruments like QE with which a Central Bank (CB) purchases government securities. This flooding [of] financial institutions with capital lowers interest rates and increases the money supply without printing new money. However, the effects of QE on the real economy were described as indirect and underwhelming.
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