Negative Interest Rate and Helicopter Money: The Feasibility of Extreme Economic Policies for UK under Covid-19
- DOI
- 10.2991/assehr.k.210806.034How to use a DOI?
- Keywords
- Covid-19, Monetary policy, Fiscal policy, Negative interest rate, Quantitative Easing, Helicopter money
- Abstract
Since the outbreak of Covid-19, the UK’s GDP has continued its downward spiral. In addition, the UK government has urgently introduced a series of economic stimulus policies to counter the negative impact of the Great Lockdown on its economy. In the short run, as the policy was introduced, both UK GDP and inflation rate have risen compared to the previous period, but the positive impact of these policies is becoming weaker and there is a significant slowdown in its growth on the UK’s economy. Therefore, this article aims to analyze two extreme policies, including negative interest rate and helicopter money, which may boost UK’s economy. Through second-hand data, these extreme policies are likely to bring about a series of side effects, such as hyperinflation, which can be shown in dramatic devaluation of the German Mark in 20th century. However, based on this research, it can be known that in the face of the continuing impact of Covid-19, the economic situation in the UK now seems to suggest that it is time for these extreme economic policies to come into play. And for the UK, they must consider minimizing the risks associated with their policies at present.
- Copyright
- © 2021, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Yiming Cheng PY - 2021 DA - 2021/08/09 TI - Negative Interest Rate and Helicopter Money: The Feasibility of Extreme Economic Policies for UK under Covid-19 BT - Proceedings of the 2021 5th International Seminar on Education, Management and Social Sciences (ISEMSS 2021) PB - Atlantis Press SP - 173 EP - 177 SN - 2352-5398 UR - https://doi.org/10.2991/assehr.k.210806.034 DO - 10.2991/assehr.k.210806.034 ID - Cheng2021 ER -