Jump to ContentJump to Main Navigation
Show Summary Details
More options …

Basic Income Studies

Ed. by Haagh, Anne-Louise / Howard, Michael

2 Issues per year


CiteScore 2016: 0.14

SCImago Journal Rank (SJR) 2016: 0.112
Source Normalized Impact per Paper (SNIP) 2016: 0.207

Online
ISSN
1932-0183
See all formats and pricing
More options …

Universal Basic Income and Helicopter Money

Jože Mencinger
Published Online: 2017-09-13 | DOI: https://doi.org/10.1515/bis-2016-0021

Abstract

A unique opportunity for testing whether universal basic income (UBI) on the European level is a realistic option could be provided by its monetary financing as an alternative to “traditional” fiscal financing. Fiscal financing of UBI would namely request a much larger European “federal” budget financed by a specific European tax or by participation of the “federation” on some of the existing tax bases, and by agreed upon allotment of the accumulated “federal” fiscal revenues. Though ensuing redistribution of GDP would be relatively modest, the European UBI without an alternative to the tax revenues requirements remains illusionary. Helicopter money (HM) replacing quantitative easing (QE) might provide such an alternative. Modalities of its implementation differ and the idea raises questions of its compliance with the legal regime of the ECB and opens many other topics such as the effectiveness of “QE for the people” and its long-run consequences.

Keywords: universal basic income; monetary policy; helicopter money; ECB

References

  • Arcarons, J., Raventos, P. D., & Torrens, M. L. (2014). Feasibility of financing a basic income. Basic Income Studies, 9(1–2), 79–93.Google Scholar

  • Astellon Capital Partners. (2016). Helicopter money – let it rain?, Q2 2016, Notes No.22.Google Scholar

  • Buiter, W. H. (2014). The simple analytics of helicopter money: Why it works-always. Economics, 8, 1–51.Web of ScienceGoogle Scholar

  • Damijan, J. P. (2016). A case for helicopter money: Monetary financing of fiscal stimulus in a liquidity trap, Banking in negative interest rates environment: special issue, Bančni vestnik, Special issue, vol. 65, 24–33.Google Scholar

  • Di Maggio, M., Kermani, A., & Palmer, C. (2016). How quantitative easing works: evidenceon the refinancing channel. NBER Working Paper 22638, September 2016.Google Scholar

  • European Parliament (2016). Helicopter money: A cure for what ails the euro area? Briefing, April 2016.Google Scholar

  • Gali, J. (2014). The Effects of a Money-Financed Fiscal Stimulus, CEPR Discussion Paper 10165, September.Google Scholar

  • Gilroy, B., Heimann, A., Schopf, M., (2013). Basic income and labour supply: The German case. Basic Income Studies, 8(1), 43–70.Google Scholar

  • Healy, S., Murphy, M., Ward, S., & Reynolds, B. (2012). Basic income – why and how in difficult economic times: Financing a UBI in Ireland. BIEN Congress Munich 14th September 2012.Google Scholar

  • ING International Survey. (2016). Helicopter money: Loved, not spent. Special report, October 2016.Google Scholar

  • Konrad, K. A., & Zschapitz, H. (2011). The Future of the Eurozone. CESifo Forum, 46–49.Google Scholar

  • Korošec, V. (2010). Predlog UTD v Sloveniji – zakaj in kako, (Proposal for UBI in Slovenia – why and how?).Google Scholar

  • Meltzer, A. H. (2016). Mortgaging our low interest future, September 1, 2016.Google Scholar

  • Mencinger, J. (2015). The Revenue Side of universal basic income in the European Union and Euro Area, Danube, 2015/3, 157–174.Google Scholar

  • Mencinger, J. (2011). Evro, fiskalni pakt, fiskalna unija (Euro, fiscal pact, fiscal union), Gospodarska Gibanja, (Economic Trends), 441, November 2011, 17–30.Google Scholar

  • Mencinger, J. (2016). Helicopter money, Banking in negative interest rates environment, Bančni vestnik, Special issue, vol. 65, No. 11, 34–40.Google Scholar

  • Walker, M.A. (2016). Why are interest rates so low? A framework for modeling current global financial developments. The Fraser Institute.Google Scholar

  • Muellbauer, J. (2014). Combatting Eurozone deflation: QE for the people. CEPR’s Policy Portal, 23 December 2014.Google Scholar

  • Munger, M. C. (2012). Basic income is not an obligation, but it might be a legitimate choice. Basic Income Studies, 6(2), 1–13.Google Scholar

  • Standing, G. (2012). Why a basic income is necessary for a right to work?. Basic Income Studies, 7(2), 19–40.Google Scholar

  • Summers, L. (2016). The age of secular stagnation: What it is and what to do about it, Foreign Affairs, February 15, 2016.Google Scholar

  • Widerquist, K. (2005). A failure to communicate: What (If Anything) can we learn from the negative income tax experiments?. The Journal of Socioeconomics, 34(1), 49–81.Google Scholar

  • Zwolinski, M. (2012). Classical liberalism and the basic income. Basic Income Studies, 6(2), 1–14.Google Scholar

About the article

Published Online: 2017-09-13


Citation Information: Basic Income Studies, ISSN (Online) 1932-0183, DOI: https://doi.org/10.1515/bis-2016-0021.

Export Citation

© 2017 Walter de Gruyter GmbH, Berlin/Boston. Copyright Clearance Center

Comments (0)

Please log in or register to comment.
Log in