Helicopter Drops are FISCAL Operations

Scott T. Fullwiler

Wartburg College; Bard College - The Levy Economics Institute

January 7, 2010

Those warning of “helicopter drops” of money by central bankers, as Ben Bernanke is often accused of doing in 2010, actually do not understand modern monetary operations. This post demonstrates that central bank operations generally are not helicopter drops, while fiscal operations in fact are. The exception for central banks would be purchasing financial assets from the non-government sector at a premium, or holding non-government sector assets that are defaulted upon.

Number of Pages in PDF File: 4

Keywords: helicopter drops, central bank operations, fiscal operations

JEL Classification: E40, E42

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Date posted: December 15, 2010  

Suggested Citation

Fullwiler, Scott T., Helicopter Drops are FISCAL Operations (January 7, 2010). Available at SSRN: http://ssrn.com/abstract=1725026 or http://dx.doi.org/10.2139/ssrn.1725026

Contact Information

Scott T. Fullwiler (Contact Author)
Wartburg College ( email )
222 Ninth St. NW
Waverly, IA 50677
United States
Bard College - The Levy Economics Institute ( email )
Annandale-on-Hudson, NY 12504-5000
United States
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