<abstract xmlns="http://www.w3.org/1999/xhtml"><p> After the outburst of the recent financial crisis, the subsequent unconventional monetary acting that seemed to be a veritable revolution tends to become a norm. This paper makes an effort to employ the modern monetary theory framework to address the nowadays recession in the Eurozone through the prism of debt perpetuation and the more drastic helicopter money drops. Dynamics of debt monetization and issues of its sustainability are examined in connection to its free liquidity injections capacity. The aim of this paper is to try to cast some light on the potential of overt money financing in the Eurozone (EZ) and its consequences on the ECB’s credibility and the maintenance of its efficacy.</p></abstract>

After the outburst of the recent financial crisis, the subsequent unconventional monetary acting that seemed to be a veritable revolution tends to become a norm. This paper makes an effort to employ the modern monetary theory framework to address the nowadays recession in the Eurozone through the prism of debt perpetuation and the more drastic helicopter money drops. Dynamics of debt monetization and issues of its sustainability are examined in connection to its free liquidity injections capacity. The aim of this paper is to try to cast some light on the potential of overt money financing in the Eurozone (EZ) and its consequences on the ECB’s credibility and the maintenance of its efficacy.

Eurozone Debt Monetization and Helicopter Money Drops: How Viable can this be?

Journal of Central Banking Theory and Practice

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Eurozone Debt Monetization and Helicopter Money Drops: How Viable can this be?"}

After the outburst of the recent financial crisis, the subsequent unconventional monetary acting that seemed to be a veritable revolution tends to become a...

Eurozone Debt Monetization and Helicopter Money Drops: How Viable can this be?

Data publikacji: 23 wrz 2017

Zakres stron: 5 - 15

Otrzymano: 25 wrz 2016

Przyjęty: 21 sty 2017

DOI: https://doi.org/10.1515/jcbtp-2017-0018

Słowa kluczowe
Unconventional monetary policy, Helicopter money, Debt monetization, Eurozone

© Central Bank of Montenegro

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Eurozone Debt Monetization and Helicopter Money Drops: How Viable can this be?

Data publikacji: 23 wrz 2017

Zakres stron: 5 - 15

Otrzymano: 25 wrz 2016

Przyjęty: 21 sty 2017

DOI: https://doi.org/10.1515/jcbtp-2017-0018

Słowa kluczoweUnconventional monetary policy, Helicopter money, Debt monetization, Eurozone

© Central Bank of Montenegro

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Słowa kluczowe
Unconventional monetary policy, Helicopter money, Debt monetization, Eurozone