Coronavirus, Helicopter Money, Adair Turner and the end of the Euro

The Germans are averse to bold monetary policies. And they have some allies in Europe: the present Dutch and Austrian governments, for instance.

They do not forget their bad experience with printing money, a century ago. And since they can block the decisions of the European Central Bank (ECB), the other countries can do very little, even if they are in the majority.

The post-2008 years can tell us a lot about what may happen in the next months and years, in Europe, in the aftermath of the coronavirus pandemic. Continue reading “Coronavirus, Helicopter Money, Adair Turner and the end of the Euro”

Monetary policies, helicopter money: China, USA and Europe

The Chinese authorities are often accused of being irresponsible or opportunist regarding their monetary policies. According to an article written in the Financial Times by Arthur Budaghyan, from BCA Research, China has chosen the path of unrelenting monetary stimulus.

“Over the past 10 years, Chinese banks have been on a credit and money creation binge. They have created Rmb144tn ($21tn) of new money since 2009, more than twice the amount of the money supply created in the US, the eurozone and Japan combined over the same period. Continue reading “Monetary policies, helicopter money: China, USA and Europe”

How much Helicopter Money can be created?

The balance between the monetary base and the available amount of goods and services is provided through the system of prices. If the parity is broken by excessive issuance of money, prices will have to change too, and inflation may soar.

That’s a basic monetary law.

However, economic laws do not have the fixity of natural laws, and some economists are now contending that there is some decoupling between money supply and inflation. Continue reading “How much Helicopter Money can be created?”