For the longest period, central banks and the Federal Reserve held all of the power in the financial world. Although very little has changed then, there are concerns regarding the “magical power” associated with these institutions. Moreover, it seems implausible central banks will aid in recovering after the financial crisis.
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When looking for ways to solve the current economic impasse, central banks are not at the top of the list.
Even if they were, their obvious solution would be to print more money. But this helicopter money approach will not fly any longer, as new solutions have to be found for global growth. Artificial stability concepts are not a viable solution.
To put this into perspective, members of the European parliament are begging for helicopter money.
After sending an open letter to ECB president Mario Draghi, 18 members feel the ECB should look into using helicopter money to buy bonds from the European Investment Bank. They justify this demand “to enhance economic development through direct spending into the real economy.”
Moreover, these states feel using helicopter money makes more sense than quantitative easing, and how it would “kick-start the EU economy.”