tag:blogger.com,1999:blog-5362801348602268473.post3816871843596558715..comments2023-11-22T00:49:32.887-08:00Comments on Reflections on Monetary Economics: Helicopter Money and the Denial of the Importance of Sound Fiscal PolicyNick Edmondshttp://www.blogger.com/profile/15342983814699700396noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-5362801348602268473.post-68102113921270425702016-06-11T01:37:03.827-07:002016-06-11T01:37:03.827-07:00Yes, I did see that - thanksYes, I did see that - thanksNick Edmondshttps://www.blogger.com/profile/15342983814699700396noreply@blogger.comtag:blogger.com,1999:blog-5362801348602268473.post-75039800796009894822016-06-11T01:36:34.163-07:002016-06-11T01:36:34.163-07:00I suppose it depends what you think characterises ...I suppose it depends what you think characterises HM. To me the only thing that distinguishes it from a lump sum fiscal transfer is what happens on the debt issuance side. Both would operationally take the form of monetary payment to the private sector; the fiscal transfer would have to be accompanied by a sale of Treasuries to neutralise the impact on reserves, whereas HM would miss out that step.<br /><br />But of course, there are other issues here, like how the amount, timing and distribution are decided and on the whole, current HM proposals do involve delegation of that power by parliament to a body that can act on a more timely basis. And I'd agree that this is a legitimate area of concern. I would say however, that the reason this might be necessary is that current arrangements for fiscal policy make it less wieldy as a demand management tool (precisely because fiscal policy is not currently seen as a demand management tool). If we wanted to have the ability to make timely fiscal transfers to address demand shortfalls, we would likely want the same delegation of powers as are mooted for HM.<br />Nick Edmondshttps://www.blogger.com/profile/15342983814699700396noreply@blogger.comtag:blogger.com,1999:blog-5362801348602268473.post-17891916123108251762016-06-10T01:23:36.130-07:002016-06-10T01:23:36.130-07:00> Nick , have you seen this analysis on this...> Nick , have you seen this analysis on this blog here - http://monetaryrealism.com/helicopter-recall-fiscal-repairs-needed/Dinerohttps://www.blogger.com/profile/14632385731642361211noreply@blogger.comtag:blogger.com,1999:blog-5362801348602268473.post-61564275315107116132016-06-09T16:51:51.413-07:002016-06-09T16:51:51.413-07:00It creates a largely unaccountable entity with the...It creates a largely unaccountable entity with the power over government purse strings, which it can use however it sees fit. It is unlikely that an elected givernment would be able to roll back this power once it has been granted.Brian Romanchukhttps://www.blogger.com/profile/02699198289421951151noreply@blogger.comtag:blogger.com,1999:blog-5362801348602268473.post-18747655334525493482016-06-09T06:58:18.216-07:002016-06-09T06:58:18.216-07:00I presume that the power to enact helicopter money...I presume that the power to enact helicopter money would have to be granted to the central bank by parliament anyway. Does that make it so different from the legislature deciding?Nick Edmondshttps://www.blogger.com/profile/15342983814699700396noreply@blogger.comtag:blogger.com,1999:blog-5362801348602268473.post-12295756352444406292016-06-09T06:54:25.530-07:002016-06-09T06:54:25.530-07:00I guess, but maybe that's the point. If "...I guess, but maybe that's the point. If "sound" is being used to suggest policy that can only be contractionary and not both ways then it's being used wrongly.Nick Edmondshttps://www.blogger.com/profile/15342983814699700396noreply@blogger.comtag:blogger.com,1999:blog-5362801348602268473.post-73516676416030342932016-06-09T03:55:05.163-07:002016-06-09T03:55:05.163-07:00As I argued in my last article, the reason why som...As I argued in my last article, the reason why some of us object to HM is that the central bank is increasing its power at the expense of parliament. Even if the policy is called for economically, democratic principles trump expedience.<br /><br />If fiscal expansion is really needed, let the legislature do it. Brian Romanchukhttps://www.blogger.com/profile/02699198289421951151noreply@blogger.comtag:blogger.com,1999:blog-5362801348602268473.post-81836535588925353072016-06-09T03:22:41.189-07:002016-06-09T03:22:41.189-07:00Nick,
"Sound" fiscal policy?
In litera...Nick,<br /><br />"Sound" fiscal policy?<br /><br />In literature "sound finance" is an euphemism for contractionary fiscal policy, so you might want to use a different word. Ramananhttp://www.concertedaction.comnoreply@blogger.com