Positive Money’s ‘Helicopter money’ video

Positive Money has published a new video that suggests that when the next financial crisis arrives, the Bank of England, instead of creating money to buy government bonds, which enriches bondholders, should give the money in equal quantities to all legal residents.

The payments would be similar to the Alaska Permanent Fund Dividend, and would have similar beneficial effects and no obvious downsides. Most importantly, most of the money would be spent into the real economy, unlike previous quantitative easing.

An additional advantage of paying the money to every legally resident individual would be that a mechanism to do that would have to be constructed. This would make the implementation of a Citizen’s Basic Income easy to achieve if the decision were to be taken to implement one.