Willem Buiter, helicopter money and Article 123 of the Lisbon Treaty
Willem Buiter, the well-respected chief economist of the US financial giant Citigroup, has thus modified the idea of helicopter money. His version calls for policymakers and central bankers to act in concert.
Buiter is unconcerned about EU regulations preventing the ECB from the kind of direct state financing such a plan would entail. He considers Article 123 of the Lisbon Treaty, which addresses the issue, to be a "disaster" anyway.
He also doesn't believe the plan would endanger the ECB's independence.
"Independence does not mean that you don't answer the phone when the minister of finance is calling," he says.
"Independence means the right to say no."
Der Spiegel
Article 123 of the Lisbon Treaty
Buiter is unconcerned about EU regulations preventing the ECB from the kind of direct state financing such a plan would entail. He considers Article 123 of the Lisbon Treaty, which addresses the issue, to be a "disaster" anyway.
He also doesn't believe the plan would endanger the ECB's independence.
"Independence does not mean that you don't answer the phone when the minister of finance is calling," he says.
"Independence means the right to say no."
Der Spiegel
Article 123 of the Lisbon Treaty
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