Helicopter Money: The Problem With Excess Bank Reserves

The video discusses helicopter money, a fiscal tool involving permanent fiscal expansion financed by central bank money. It highlights the controversy around its financing, particularly the impact on central bank independence. The speaker argues for financing through bonds instead of bank reserves, citing the current excess reserves in the financial system. Examples like the Bush rebates are examined, and the global context of helicopter money in regions like Japan, the US, and Europe is considered.

What is the significance of central bank independence in the context of helicopter money?

What is the author's stance on the necessity of helicopter money in fiscal policy?