Time for "a helicopter drop with a drainage contingency" - a large but temporary cut in sales...

|By:, SA News Editor

Time for "a helicopter drop with a drainage contingency" - a large but temporary cut in sales taxes, argues Ricardo Caballero. The ineffectiveness of monetary policy could be "turned on its head" by using money creation to finance such a fiscal policy stimulus, and the Treasury could commit to transfer resources back to the Fed when the economy comes back.