Money is just another financial instrument. However, for historical reasons, economic theory has been warped by the concept of money. As a result, any debate involving money usually takes place behind a cloak of unreality.
As I will discuss below, the use of "helicopter money" offers no new policy space. At best, there is a reshuffling of central government liabilities amongst holders.
If someone presented us with a theory that by issuing Floating Rate Notes instead of fixed coupon bonds, all our economic ills would suddenly disappear, people would not take the theory seriously. But by replacing "Floating Rate Notes" with "money," we end up with an interminable debate.
The rest of this article explains why Helicopter Money offers us no new policy options, instead it is akin to fooling around with the mix of types of Treasury bonds and bills issued.…Bond Economics
The Pointlessness Of Helicopter Drops