View full page at forexfactory.com

 

'Helicopter money' might weaken currencies more than QE as sky's the limit

From reuters.com

Central banks might inject no more cash into economies by dropping money from aircraft -- whether real or imaginary -- than via well-worn QE schemes, but in breaking a long-standing taboo they may do far more damage to currencies. After decades of zero interest rates and quantitative easing-style asset purchases, Japan is still mired in deflation. As the country gears up for yet more stimulus, financial market speculation has swirled that the Bank of Japan may now go one step further and, by introducing direct funding of government with newly-minted notes, cross into the realm of 'helicopter money'. The BOJ, holding ... (full story)

Story Stats

  • Posted:
  • Category: Breaking News