Regarding the proposal of the French Council of Economic Analysis that the European Central Bank (ECB) could use helicopter money to meet the inflation target, the governor of the Bank of France, Francois Villeroy de Galhau, voiced his opposition, according to Reuters.
“Helicopter money, which has never been implemented and would be complex in practice, does not seem like a good idea to us,” Villeroy said. “Such money transfers would leave an equivalent-sized hole in the central bank’s balance sheet., which would require a loss to be accounted for. “
Market reaction
These comments do not appear to have a noticeable impact on the performance of the shared currency against its rivals. At time of writing, the EUR / USD pair was down 0.05% on the day at 1.2118.
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