Would helicopter money be spent? New evidence for the Netherlands. Issue 58 (14th December 2019)

• Record Type: Journal Article
• Authors: Rooij, Maarten van; de Haan, Jakob
• Is Part Of: Applied economics. Volume 51:Issue 58(2019)
• Page Start: 6171
• Page End: 6189
• Publication Date: 2019-12-14
• Subjects: Helicopter money -- central banking -- ECB -- trust -- unconventional monetary policy; E52 -- E58 -- D14; Economics -- Periodicals; 330
• DOI: 10.1080/00036846.2019.1613504
• Languages: English
• ISSNs: 0003-6846

Abstract

ABSTRACT: According to some economists, central banks should use 'helicopter money' to boost inflation (expectations). Based on a survey among Dutch households, we examine whether respondents would spend the money received via such a transfer. Our results show that respondents expect to spend about 30% of the transfer and that helicopter money would hardly affect inflation expectations. Furthermore, whether transfers come from the central bank or the government makes no difference. Finally, our results suggest that the effect of helicopter money on public trust in the ECB is ambiguous.