the Russians explained the impossibility of distributing money just like that. Experts told RIA Novosti, why in Russia it is not the time to distribute “helicopter money.”
Russian authorities will not give the Russians money in the epidemic of the coronavirus, because direct payments can lead to inflation shock in the country.
Managing Director of macroeconomic analysis and forecasting “Expert RA” Anton tabah, said that “helicopter money” is an extreme remedy to save the economy, when the key rate is near zero, but the business and banks do not want to give money.
In Russia there is no such need, said Deputy Director of the sovereign ratings and macroeconomic analysis of AKR Dmitry Kulikov. “In real world practice “helicopter money” is considered as a way to fight deflation and its nasty effects, that is not entirely true for Russia at the present stage,” he explained.
He added that in its purest form, this practice has not been applied anywhere. So, in the United States for the direct payment must have an annual income below $ 75 thousand.
Chief analyst “BCS Premier” Anton Pokatovich believes that the Central Bank does not take such steps until it is fully consumed standard measures of easing monetary policy and support the economy. Helicopter money can be paid after the rates have been reduced de facto near ground zero, the controller implements a program of quantitative easing, including buying debts.
the head of the analytical Department of the Bank BKF Maxim Osadchy called calls for payments to all citizens as a populist. “This is an extreme measure of monetary policy when other measures are insufficient. The mindless throwing of “helicopter money” would be unfair – will get the assistance and those who don’t need it. You should also take into account the inflation shock as a result of this infusion of money into the economy”, — explained the analyst.
He added that appropriate targeted support to the most affected segments of the population. For example, those who are already sick with coronavirus and members of their families who have lost their job because of the epidemic. Also we need to support citizens who have significantly decreased revenues, Osadchy said.
Earlier, the Chairman of the Central Bank of Russia Elvira Nabiullina refused to consider one of the ways of overcoming the current crisis of so-called helicopter money concept, in which citizens give money away just like that.
