Advancing the Monetary Policy Toolkit Through Outright Transfers

60 Pages Posted: 24 May 2022

See all articles by Sascha Bützer

Sascha Bützer

International Monetary Fund (IMF)

Date Written: May 1, 2022


This paper argues that in reserve currency issuing economies at the effective lower bound, outright transfers from the central bank to households are both more equitable and more effective in achieving monetary policy objectives than asset purchases or negative interest rates. It shows that concerns pertaining to central banks’ policy solvency and equity position can be addressed through a careful assessment of a central bank's loss absorbing capacity and, if need be, tiered reserve remuneration policies. It also spells out key differences to a debt or money financed fiscal stimulus, which are particularly pronounced in a currency union without a central fiscal capacity. The paper concludes by discussing broader institutional, political, and legal considerations.

Keywords: Monetary Policy, Outright Transfers, Central Bank Balance Sheet, Central Bank Solvency, Central Bank Equity, Helicopter Money, Inequality, policy solvency, equity position, revaluation account, Unconventional monetary policies, Financial statements, Global

JEL Classification: D63, E42, E52, E58, E63, F33, H83, E62, H63

Suggested Citation

Bützer, Sascha, Advancing the Monetary Policy Toolkit Through Outright Transfers (May 1, 2022). IMF Working Paper No. 2022/087, Available at SSRN:

Sascha Bützer (Contact Author)

International Monetary Fund (IMF)

700 19th Street N.W.
Washington, DC 20431
United States

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