When is the right time for UBI and helicopter money?
“Give me chastity and continence, but not yet,” sighed St. Augustine in his Confessions . Today, as the world reels under the impact of coronavirus, policymakers are at last reaching for tools I have long advocated: helicopter money and Universal Basic Income. And yet, like St. Augustine, I find myself sighing, “Lord, grant us helicopter money and Universal Basic Income, but not yet .” I have spent much of the last decade advocating giving people money. Helicopter money in recessions, to boost spending and kickstart recovery: and Universal Basic Income (UBI) , to set a floor under incomes and ensure that no-one is ever left without the means to live. Now, because of the coronavirus, both are for the first time being widely, and seriously, considered. The US Government is about to give payments directly to every American adult: strictly speaking this is fiscal policy, not helicopter money, since it isn’t directly financed by the central bank, but as the Fed is buying Treasu...