Adair Turner wrote arguing for helicopter money, as an alternative to lower, or negative interest rates, to stimulate the economy. Paul Krugman comes down on the side of Adair, concluding that I have got confused about what effect a helicopter loosening would have on nominal interest rates by staying in the confines of a static IS/LM-type model.
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Liquidity and Fisher effects of a helicopter…
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Adair Turner wrote arguing for helicopter money, as an alternative to lower, or negative interest rates, to stimulate the economy. Paul Krugman comes down on the side of Adair, concluding that I have got confused about what effect a helicopter loosening would have on nominal interest rates by staying in the confines of a static IS/LM-type model.