Helicopter Drop of Money - Is It Feasible in Practice?
| Název práce v češtině: | Shazování peněz z vrtulníku - je reálné v praxi? |
|---|---|
| Název v anglickém jazyce: | Helicopter Drop of Money - Is It Feasible in Practice? |
| Klíčová slova anglicky: | Helicopter drop of money, quantitative easing, monetary base, liquidity trap, zero lower bound |
| Akademický rok vypsání: | 2014/2015 |
| Typ práce: | bakalářská práce |
| Jazyk práce: | angličtina |
| Ústav: | Institut ekonomických studií (23-IES) |
| Vedoucí / školitel: | doc. Mgr. Tomáš Holub, Ph.D. |
| Řešitel: | skrytý - zadáno vedoucím/školitelem |
| Datum přihlášení: | 25.03.2015 |
| Datum zadání: | 11.05.2015 |
| Datum a čas obhajoby: | 14.06.2016 08:00 |
| Místo konání obhajoby: | IES, m 314 |
| Datum odevzdání elektronické podoby: | 11.04.2016 |
| Datum proběhlé obhajoby: | 14.06.2016 |
| Oponenti: | PhDr. Tomáš Adam, Ph.D. |
| Kontrola URKUND: | |
| Zásady pro vypracování |
| First formulated by Milton Friedman in Optimum Quantity of Money (1969), Helicopter Drop of Money is a concept based on distribution of extra cash amongst population in order to recover economy. According to Friedman, this tool should serve as a universal solution to economic recession, and its negative side-effect - deflation. He views the severe and long era of Great Depression as a result of reluctance of FED to inflate economy enough. Ben Bernanke admitted this FED’s fault in his 2002 speech before the National Economists Club, and suggested solutions to avoid deflation in the future. Amid the 2008 financial crisis and its reverberating effects, there is a space for assessing monetary actions taken by central banks such as quantitative easing and comparing them to Helicopter Drop of Money.
Hypothesis: • What constraints are there for realistic applicability of Helicopter drop of money? • Is there any practical experience with direct distribution of cash or cash equivalents ? • Does an increase in base money in reality help to stop deflationary pressures? • What impacts did quantitative easing (QE) in Japan and the USA have? Is there an evidence to claim that changes in economic factors (especially CPI) are a result of QE? Methodology: The qualitative research will be based on analysing existing economic literature and theories related to the topic and their critical evaluation. Particular focus will be put on examination of central banks’ competences, rights, and constraints when it comes to need for such an atypical monetary measure as Helicopter Drop of Money is. The quantitative part of research will be based on data from official institutions (IMF, US Department of Treasury, OECD etc.) and application of suitable econometric methods to test the relationship between the scale of monetary base (MB), money stock, CPI and GDP to find whether there exists any effect of an increase in the MB on the other economic variables, which is one of the key assumptions for functionality of Helicopter Drop of Money. The VAR methodology will be applied. |
| Seznam odborné literatury |
| BERNANKE, Ben. Deflation: Making Sure "It" Doesn't Happen Here. speech before the National Economists Club, Washington, D.C. on November 21, 2002. transcription accessible at: http://www.federalreserve.gov/boarddocs/Speeches/2002/20021121/default.htm
BUITER, Willem H. The Simple Analytics of Helicopter Money: Why It Works - Always. Economics: The Open-Access, Open-Assessment E-Journal, Vol. 8, 2014-28. DOI 10.5018/economics-ejournal.ja.2014-28 accesible at: http://dx.doi.org/10.5018/economicsejournal.ja.2014-28 COCHRANE, John H. The New-Keynesian Liquidity Trap. University of Chicago Booth School of Business. January 9, 2015. [online]. accessible at: \burl{http://faculty.chicagobooth.edu/john.cochrane/research/papers/zero_bound_2.pdf EGGERTSON, Gauti B., WOODFORD, Michael. Zero Bound on Interest Rates and Optimal Monetary Policy. Princeton Eocnomic Press, Brookings Papers on Economic Activity, 1:2013. DOI 10.1353/eca.2003.0010. FRIEDMAN, Milton. Monetary and Fiscal Framework for Economic Stability. The American Economic Review, vol. 38, 3/1948 KEYNES, John Maynard. The General Theory of Employment Interest and Money. London: Macmillan and Co., 1936, 403 p. KRUGMAN, Paul R. It's Baaack: Japan's Slump and the Return of the Liquidity Trap. Brooking Papers on Economic Activity. 2:1998. Massachusetts Institute of Technology, p. 137-205 |
| Předběžná náplň práce |
| Hlavním cílem práce je ukázat, zda monetární páka, která teoreticky umožňuje centrální bance vyřešit past likvidity depreciací vlastní měny (která v podobě měny s nuceným oběhem nemá žádnou vlastní hodnotu), může v praxi fungovat navzdory možným právním, logistickým, politickým a ekonomickým překážkám.
1. Úvod 2. Teorie 3. Koncept politiky vrtulníkového efektu 4. Praxe v reálném světě 5. Empirická analýza kvantitativního uvolňování 6. Závěr |
| Předběžná náplň práce v anglickém jazyce |
| The output of this thesis should primarily show if a monetary lever, that theoretically enables central banks to resolve liquidity trap by depreciating the value of its own currency (which in the form of fiat money does not have any intrinsic value), could work in practice despite possible legal, logistical, political and economic constraints.
1. Introduction 2. Theoretical background 3. Helicopter Drop of Money concept 4. Practice from the real world 5. Empirical analysis of quantitative easing 6. Conclusion |