Share the post "Helicopter Money Policy Formulation"The following is a guest post from fellow Monetary Realism contributor JKHAn important aspect of helicopter money is just how a central bank would obtain the authority to undertake such a policy. Eric Lonergan is a leading proponent of HM. As he points out, the resolution of this issue could depend on the institutional regime for the central bank in question. For example, it may be quite different in the case of the ECB than for the Fed, the Bank of Canada, or the Bank of England.In all cases, however, the delegated authority should be clear in delineating how helicopter money relates to standard fiscal and monetary policy responsibilities. I left the followingcomment along these lines at Eric’s post on the institutional perspective:I agree that institutions matter. And words and definitions should be used carefully for framing and communicating the policy. That’s why I think it is helpful to sort out the use of the terms fiscal policy and monetary policy as best as possible. Some influential types like Michael Woodford use fiscal policy in the description of helicopter money from the get go. So the issue of semantics can’t really be avoided. If connection between fiscal policy and monetary policy is made as clear as possible, all the better.

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