Friday, June 17, 2016

It Begins: Members Of European Parliament Beg Draghi To Unleash Helicopter Money

Remember earlier this year when Mario Draghi said that the use of helicopter money was "a very interesting concept"? If not, rest assured that 18 members of the European Parliament do.
In an open letter to ECB president Mario Draghi, 18 members of the European Parliament's social democrat, leftwing and green groups recommended that the ECB look into the use of helicopter money and buying bonds from the European Investment Bank "as possible solutions to enhance economic development through direct spending into the real economy" the FT reports.
The leader of parliament's Green group, Philippe Lamberts, who is also one of the signatories, said that embracing helicopter money could make more sense than continuing with the ECB's current quantitative easing policy, because "inundating a sick financial system under a tsunami of liquidity equates to pushing on a string", adding that buying EIB bonds would be a "robust alternative to kick-start the EU economy."

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