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”

Helicopter Money is different from Quantitative Easing

Quantitative Easing: a policy whereby a Central Bank, such as the FED or the ECB or the Bank of Japan, purchases existing government bonds in order to pump money directly into the financial system; the ultimate goal is to solve banking problems and to promote consumption and investment. 

Helicopter money: the creation of money by central banks and its distribution for free to taxpayers in order to solve unemployment and economic problems. Continue reading “Helicopter Money is different from Quantitative Easing”