Fed could exploit helicopter money with digital currency system – former officials

RAF Merlin helicopter hugs valleys in the lake district

Current advances in technology could provide the US Federal Reserve with greater firepower during a recession by enabling it to harness the benefits of helicopter money, say two former Fed officials.

Using a system of digital currency-based consumer accounts, the Fed could purchase a new type of bond directly from households as part of a quantitative easing (QE) programme, says Simon Potter, former head of the Federal Bank of New York’s markets group, and Julia Coronado, a former Fed board

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