Monday, April 18, 2016

Helicopter Money To The Rescue
Mises Institute posted essay sheds light on the insanity & futility of helicopter money, first proposed by Milton Friedman .. 
Following the unconventional monetary policy of negative interest rates, central banks are now considering an even more desperate measure: “helicopter money.” Milton Friedman is credited with this idea - bypass the middleman, the banks & provide funds directly to the consumers .. "Common sense states that you cannot repeal the law of scarcity by printing intrinsically worthless pieces of paper to finance private or government expenditures. If that were true, counterfeiting would be legal and Zimbabwe would be like heaven. The initial effect of such printing is a temporary illusion of prosperity which begets more printing leading to ever increasing amounts of distortion to prices. Friedman’s comments about helicopter money included an important caveat: it is unlikely that the helicopters would fly only once."
LINK HERE to the essay

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