There is a good alternative to helicopter money, one that could be tried by governments in a time of pandemic: a fiscal policy based in high progressive income taxes, that is, a policy in which the rich but also the high-paid people would be subject to much higher tax rates (at least as long as the crisis lasted).
Let me explain what I mean, by telling you a story inspired by Enrico Moretti, a Professor of Economics at the University of California, Berkeley. Continue reading “High-paid workers and the Coronavirus relief”