Monetary policy and the markets: What if the helicopters took off?

" INTEREST rates are negative in much of Europe and Japan, and it may be a while before the Federal Reserve follows up December's quarter-point increase in rates. So that doesn't leave the authorities with a lot of room, in terms of altering the level of rates, to ease policy if another downturn hits." This article is interesting to read as it talks about the negative interest rates in countries like Japan and part of Europe. It talks about the effects of it on the Us economy and what the countries next move should be. The article proposes a policy "Helicopter Money" which is defined as money that the fed can create through Monetary policies such as increasing government spending on infrastructure or by direct transfers to consumers in order to increase inflation which is less than the expected rate. Thus an increase in GDP through the hellicopter money can help increase inflation stimulated by an increase in Demand and Gdp.

Article Link: http://www.economist.com/blogs/buttonwood/2016/03/monetary-policy-and-markets