Yellen: ‘Helicopter money’ legitimate in extreme circumstances

Published June 15, 2016 7:27pm ET



Having the central bank create money to finance government spending directly is a monetary tool that legitimately could be considered in extreme circumstances, Federal Reserve Chairwoman Janet Yellen said Wednesday.

The concept, referred to as “helicopter money,” or something like it “is something that one might legitimately consider,” Yellen said at a press conference, mentioning specifically the possibility of the central bank coordinating closely with fiscal authorities such as the U.S. Treasury.

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