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Coronavirus Pandemic and Helicopter Money

The coronavirus pandemic is causing a huge contraction and high unemployment in most economies worldwide. According to the St Louis FED projections, the economic American freeze could send the unemployment rate past 32%.

This may encourage policymakers to try new strategies, including unconventional monetary finance like helicopter money, that is, the creation of money by central banks and its distribution for free to taxpayers or companies in order to solve unemployment and economic problems. Continue reading “Coronavirus Pandemic and Helicopter Money”

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What are the alternatives to the stay-at-home coronavirus pandemic policies?

The stay-at-home-social-distancing coronavirus policies are being supported by financial packages of billions or trillions of dollars.

And also by active monetary policies taken by the central banks: the injection of money in the economy through loans at zero interest rates (or even negative interest rates) or quantitative easing policies: the purchasing of bonds and other debt instruments. Continue reading “What are the alternatives to the stay-at-home coronavirus pandemic policies?”

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Reopening the economy despite the coronavirus pandemic?

According to an article published in the New York Times, in 23/03, “President Trump was considering reopening the economy, over health experts’ objections”.

“Our country wasn’t built to be shut down,” President Trump has said in a briefing. “America will, again, and soon, be open for business. Very soon. A lot sooner than three or four months that somebody was suggesting. Lot sooner. We cannot let the cure be worse than the problem itself.” Continue reading “Reopening the economy despite the coronavirus pandemic?”