{"id":19781,"date":"2016-04-11T12:57:35","date_gmt":"2016-04-11T17:57:35","guid":{"rendered":"http:\/\/olduvai.ca\/?p=19781"},"modified":"2016-04-11T12:58:14","modified_gmt":"2016-04-11T17:58:14","slug":"ben-bernanke-helicopter-money-may-be-the-best-available-alternative","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=19781","title":{"rendered":"Ben Bernanke: “Helicopter Money May Be The Best Available Alternative”"},"content":{"rendered":"

Ben Bernanke: “Helicopter Money May Be The Best Available Alternatives<\/a><\/h3>\n
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Now that the prospect of helicopter money by the ECB has so infuriated Germany, the\u00a0ECB had to reach out\u00a0<\/a>to Schauble to “mollify” the Germans who are dreading the second coming of monetary paradrops in one century, it was only a matter of time before Citadel’s most prominent employer opined. In a blog post earlier today, Brookings’ blogger and the central banker who together with Alan Greenspan has been most responsible for the world’s unprecedented debt pile and sad economic state,\u00a0Ben Bernanke<\/strong><\/em>, took the podium to share his views on “helicopter money” head on.<\/p>\n

In “What tools does the Fed have left? Part 3: Helicopter money<\/a>” the former Fed head who first infamously hinted at helicopter money in his November 2002 speech “Deflation: Making Sure “It” Doesn’t Happen Here<\/a>” when he quoted Milton Friedman, once again started off with a Friedman quote:<\/p>\n

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“Let us suppose now that one day a helicopter flies over this community and drops an additional $1,000 in bills from the sky, which is, of course, hastily collected by members of the community. Let us suppose further that everyone is convinced that this is a unique event which will never be repeated.” (Milton Friedman, \u201cThe Optimum Quantity of Money,\u201d 1969)<\/div>\n<\/blockquote>\n

He then pulls a quote from his own book “The Courage to Act”<\/p>\n

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“The deflation speech saddled me with the nickname ‘Helicopter Ben.’\u00a0<\/strong>In a discussion of hypothetical possibilities for combating deflation I mentioned an extreme tactic\u2014a broad-based tax cut combined with money creation by the central bank to finance the cut. Milton Friedman had dubbed the approach a ‘helicopter drop’ of money. Dave Skidmore, the media relations officer\u2026had advised me to delete the helicopter-drop metaphor\u2026<\/div>\n<\/blockquote>\n
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…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Ben Bernanke: “Helicopter Money May Be The Best Available Alternatives Now that the prospect of helicopter money by the ECB has so infuriated Germany, the\u00a0ECB had to reach out\u00a0to Schauble to “mollify” the Germans who are dreading the second coming of monetary paradrops in one century, it was only a matter of time before Citadel’s […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[952,68,1719,124,202,359,5981,413,452,2586,534,954,549,11330,669,1264,4789,4318],"class_list":["post-19781","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alan-greenspan","tag-ben-bernanke","tag-bond","tag-central-banks","tag-deflation","tag-germany","tag-helicopter-money","tag-hyperinflation","tag-japan","tag-milton-friedman","tag-monetary-policy","tag-money-supply","tag-national-debt","tag-real-interest-rates","tag-reality","tag-recession","tag-willem-buiter","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19781"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19781\/revisions"}],"predecessor-version":[{"id":19783,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19781\/revisions\/19783"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}