Jože Mencinger bibliography

ECB failure, helicopter money, and universal basic income

Gospodarska gibanja 491



The failure of ECB monetary policy provides unique opportunity for testing whether universal basic income on the EU or EMU level is a realistic option or just an illusion. In principle, UBI could be introduced only by a much larger EU “federal” budget financed by a specific European tax, by participation of “federation” on some of the existing tax bases, and by redistribution of “federal” fiscal revenues. Though ensuing redistribution of GDP would be relatively modest, the introduction of UBI on the European level without an alternative to the tax revenues requirements is illusionary. Helicopter money, recently discussed as a way out of impasse of the ECB monetary policy, provides such an alternative. It is an ideal experimental possibility for the problems on the revenue side of UBI. 

Key words: 
monetary policy, ECB, helicopter money, universal basic income

Full article is available in Slovenian language.

Only a part of the articles in the publication Gospodarska gibanja (Economic Trends) is written in the English language. Please visit the Slovenian web page.


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