- Helicopter money: a few facts

I found a nice summary of the pros and cons of helicopter money, a proposed monetary policy that would further stimulate the economy.  I can't imagine that the Fed would try it but I could see the ECB trying it.

From the article,

What makes helicopter money different from a conventional tax cut is
that helicopter money is paid for by the central bank printing money,
rather than the government issuing debt.(...)  helicopter money is actually the combination of two very familiar
policies: QE coupled with a tax cut. Another way of thinking about it:
instead of using money to buy assets (QE alone), the central bank gives
it away to people. If you think intuitively that this would be a better
use of the money as a means of stimulating the economy, I think you are
right.

 The author lists mechanisms that could be used to get the money to people.  The interesting point that he makes (at least to me) is that the money would have to be rationed somehow because not every person would receive money.  I can see so many ways that a rationing system could turn into a political game of increasing inequality. 

 

- Alpha.Sources - The (Impossible) Economics of Helicopter Money