Japan's 2% Inflation Target – Chopper Money?

Japan’s 2% Inflation Target – Chopper Money? by Teresa Kong, CFA – Matthews Asia Imagine a helicopter flying overhead, spilling thousand-dollar bills all over your backyard. That’s the visual that comes to mind when I read about “helicopter money”, a proposed alternative to quantitative easing (QE). The most recent headlines on this topic have centered around Japan. As the Bank of Japan approaches practical limits on its purchase of government bonds, several economists have argued that it might be time to consider helicopter money. Simply put, helicopter money is a direct transfer of money to raise inflation and output in an…