Thursday, October 09, 2008

Banks, Helicopters, and Strategy

From a thought-provoking Business Week piece on stopping financial panic:

So far, crisis managers in the U.S. and abroad have relied mostly on using "helicopter money"—that is, dropping dollars across the financial landscape in hopes of reviving lending and spending. Generations of mainstream economists around the world learned this approach at the feet of the late Nobel laureate economist Milton Friedman, who coined the helicopter metaphor. Federal Reserve Chairman Ben Bernanke, while parting from Friedman in some particulars, shares his general approach—and in fact earned the moniker "Helicopter Ben" after citing Friedman's coinage in a 2002 speech.

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