Is Helicopter Money a Solution During COVID-19?

Abstract

Purpose: With the spread of the COVID-19 epidemic in the world, a series of restrictions and closures were carried out in countries. These restrictions and shutdowns are likely to trigger a recession in economies. Despite what may be the worst economic crisis since 1930, policymakers have introduced a series of financial packages. Therefore, it brought direct money transfers to households in the fight against the economic crisis. In this direction, explaining the term helicopter money is to explain this policy, seen as an alternative way out during the epidemic process, and to investigate whether there will be a solution proposal. Scope: So far, policymakers have implemented a series of combat packages in the ongoing economic downturns. However, it has emerged that more than conventional policies are needed in unpredictable situations such as epidemics. Therefore, different approaches have been discussed and implemented in unexpected crises. Method: First, the epidemic%E2%80%99s effects on the economy, the policy recommendations, and the literature were examined, and the emphasis notes were reviewed. Conclusion: Helicopter money is considered more substantial than other fiscal expansions in the inflation target in deflationary countries. However, helicopter money risks creating hyperinflation in countries with high inflation. In addition, the implementation falls within the domain of financial authorities and jeopardizes the autonomy of central banks. In many economies, it is seen that fiscal policies are preferred more than monetary policies in combating the adverse effects of the epidemic process. Originality: Comprehensive policies have been implemented in the economies during the COVID-19 outbreak. In this context, helicopter money has been evaluated to reduce economic damage during the epidemic process effectively. Examples of helicopter money include tax reductions, financing of public deficits, and money transfers to the private sector.

Keywords

• Helicopter Money
• COVID-19
• Inflation

COVID-19 SÜRECİNDE HELİKOPTER PARA ÇÖZÜM MÜ?

Abstract

Amaç: COVID-19 salgınının dünyada yayılmasıyla ülkelerde bir dizi kısıtlamalar ve kapanmalar gerçekleştirildi. Bu kısıtlamaların ve kapanmaların ekonomilerde durgunluğu tetiklemesi olasıdır. 1930’dan beri en kötü ekonomik kriz olma ihtimaline karşın politika yapıcılar bir dizi ekonomik paketini devreye almışlardır. Dolayısıyla ekonomik kriz ile mücadelede hanehalkına doğrudan para transferini gündeme getirmiştir. Bu doğrultuda helikopter para terimini açıklayarak salgın sürecinde alternatif çıkış yolu olarak görülen bu politikayı açıklamak ve çözüm önerisi olup olmayacağını araştırmaktır. Kapsam: Şimdiye kadar süre gelen ekonomik darboğazlarda politika yapıcıların bir dizi mücadele paketlerini devreye almışlardı. Ancak salgın gibi öngörülemeyen durumlarda alışılagelmiş politikaların yeterli düzeyde etkili olmadığı kanısı ortaya çıkmıştır. Dolayısıyla beklenmedik krizlerde daha farklı politikalar tartışmaya ve uygulanma başlanmıştır. Yöntem: Öncelikle salgının ekonomideki etkileri daha sonra politika önerileri literatür incelenmiş olup vurgu notları irdelenmiştir. Sonuç: Deflasyonist ülkelerde helikopter paranın, enflasyon hedefinde diğer mali genişlemelerden daha güçlü olduğu kabul edilmektedir. Ancak enflasyonun yüksek olduğu ülkelerde helikopter para uygulaması hiperenflasyon yaratma riski barındırmaktadır. Ayrıca uygulama mali otoritelerin alanına girmekte ve merkez bankalarının özerkliğini tehlikeye düşürmektedir. Birçok ekonomilerde salgın sürecinin getirdiği olumsuz etkilerle mücadelede mali politikaların para politikalardan daha çok tercih edildiği görülmektedir. Özgünlük: COVID-19 salgınında ekonomilerde kapsamlı politikalar devreye alınmıştır. Vergi indirimleri, kamu açıklarının finansmanı, özel sektöre para transferi gibi uygulamalar helikopter para örnekleri olarak bilinmekte ve bu bağlamda salgın sürecinde ekonomik tahribatın azaltılmasında helikopter para etkili olabilmesi değerlendirilmiştir.

Keywords

• Helikopter Para
• COVID-19
• Enflasyon

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