Snarky Behavior

Make it Rain!

March 7, 2008 · 1 Comment

fat joe

So it looks like our country is facing a liquidity trap.  Not enough money to go around, banks won’t lend anyway because they’re writing off their losses, and there’s no way to introduce more money without causing inflation.

Milton Friedman’s answer to the liquidity trap was to bypass financial intermediaries and give money directly to consumers– a so-called “helicopter drop”.

I’m all for this.  Let’s replace Ben Bernake with Fat Joe and fly around Manhattan dropping dollars.  It’s more fun than getting a check from the IRS, and think of all of the excitement it will generate!  It’s like being in the money machine.

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1 response so far ↓

  • Rohit // March 7, 2008 at 2:54 pm | Reply

    The problem with appointing Fat Joe Fed Chair is, of course, that 50 might get mad, and shoot up the place (which place is not clear, but it’s guaranteed to be some place). Also, money dropped out of a helicopter might be acquired by the masses, which clearly would not comport with our strong subscription to trickle down economics. Andrew Mellon likely rolled over in his grave at the mere suggestion.

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