Here is the latest Keynesian economics policy recommendation: Just print money and mail checks to everyone.
“Helicopter money is a coordinated monetary and fiscal stimulus. It is a fiscal stimulus funded permanently by the Central Bank,” said Willem Buiter, the chief economist of Citigroup, according to Bloomberg.
“There are obvious win-win situations that we could have. Restructuring of debt if possible, haircuts if necessary, and then a well-targeted fiscal stimulus funded ultimately through the European Central Bank (ECB), people’s helicopter money.”
“People call it helicopter money because that is a sort of cute example. But the Central Bank itself provides a fiscal stimulus by sending checks to every man, woman, and child of the country,” said Buiter.
Buiter would like to see it happen in Europe and China, reports Bloomberg.
Yup, just print up money and send it to every man, woman and child, as if printing money is somehow a boost to an economy, rather than production.
Pretty insane. But this is the type of policy advocacy that is taken seriously these days by mainstream Keynesian economists who really have no clue how the economy works.
By such policy advocacy, it reveals that Buiter has no fundamental grasp of business cycle theory, the nature of productivity, Say's Law or simple supply and demand economics.