The term helicopter money has become more common in the current economic depression. The use of helicopter money and trillion dollars of stimulus are linked to Modern Monetary Theory (MMT). MMT is an unconventional economic concept that differs from mainstream economics. One core idea in MMT is that countries such as the United States that uses a fiat currency and have a monopoly to supply it are be able to print as much money as they need.
In the 1990s, the concepts promoted by MMT are viewed as opposed to conventional economics. Recent actions from central banks and regulators around the world since the Global Financial Crisis in 2008 have actually moved these controversial ideas to the mainstream. Now with the Covid-19 pandemic and impending global depression, MMT has now become the default policy actions for governments and central banks around the world.
Are these policy actions effective? What are the advantages and disadvantages? What is the impact to the capital markets both in Malaysia and around the world? These are the questions that will be answered for participants of the course.
What you’ll learn
- Describe the concepts promoted by the modern monetary theory (MMT)
- Compare fiscal policy versus monetary policy
- Discuss effectiveness of QE in addressing the economic issues of a world in lockdown
- Describe the application of MMT using the helicopter money analogy
- Discuss the impact of stimulus measures on the capital markets
