Beware of the Chaos of Helicopter Money

by Daily Bell Staff
The Daily Bell

Indian central bank governor says helicopter money no panacea … Indian Central Bank Governor Raghuram Rajan said on Tuesday that he had doubts “helicopter money”, or free cash given directly to citizens to stimulate growth, would be successful if adopted by developed world policymakers. – Reuters

Raghuram Rajan has come out against helicopter money and this is probably to be expected from India’s version of US central banker Paul Volcker.

Both men hiked interest rates hard to halt rapid price inflation. In Rajan’s case, the rupee was depreciating at 10 percent per year.

Now the rupee has stabilized and Rajan gets credit for monetary success and for working closely with India’s Ministry of Finance.

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