Why do we talk about "helicopter money"? We talk about helicopter money because we seek a tool for managing aggregate demand--for nudging the level of spending in an economy up to but not above the economy's current sustainable productive potential--that is all of:
- Effective and successful--even in the very low interest rate world we appear to be in.
- Does not excite fears of an outsized central bank balance sheet--with its vague but truly-feared risks.
- Does not excite fears of an outsized government interest-bearing debt--with its very real and costly amortization burdens should interest rates rise.
- Keeps what ought to be a technocratic problem of public administration out of the mishegas that is modern partisan politics.