Helicopter Drops are FISCAL Operations

4 Pages Posted: 15 Dec 2010

See all articles by Scott Fullwiler

Scott Fullwiler

Wartburg College; Bard College - The Levy Economics Institute

Date Written: 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.

Keywords: helicopter drops, central bank operations, fiscal operations

JEL Classification: E40, E42

Suggested Citation

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

Scott 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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