Infrastructure planning and moral hazard

As central banks around the world deplete their monetary arsenal without succeeding in reviving growth, strong consensus is building for large fiscal stimulus in the form of infrastructure investments. Contrary to QE, widely criticized for contributing to the increase in social inequality, infrastructure investments are palatable to all parts of the political spectrum as they … Continued

“Helicopter money” is fiscal stimulus through the back door

Financial repression, either by means of quantitative easing programs or negative interest rates, is nowadays becoming ubiquitous. However, the benefits that the early adopters –US and UK – of these unorthodox monetary policies could enjoy are currently failing to bring inflation and stimulate economic growth in other parts of the world. Explanations for the diminishing … Continued