ECB’s Villeroy: Helicopter money does not seem to us to be a good idea

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Regarding the French Council of Economic Analysis’ proposal that the European Central Bank (ECB) could use helicopter money to meet the inflation target, Bank of France Governor Francois Villeroy de Galhau voiced his opposition, per Reuters.

“Helicopter money, which has never been implemented and would be complex in practice, does not seem to us to be a good idea,” Villeroy said. “Such transfers of money would leave an equivalent sized hole in the central bank’s balance sheet requiring a loss to be booked.”

Market reaction

These comments don’t seem to be having a noticeable impact on the shared currency’s performance against its rivals. As of writing, the EUR/USD pair was down 0.05% on a daily basis at 1.2118.

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