Kocherlakota: The crucial point here is that there's no need to employ helicopter money if the government is willing to use its powers to help central banks generate inflation. Suppose the Treasury borrows $100 billion and spends it on new construction. The related hiring will put upward pressure on wages, which will increase businesses' costs and prompt them to raise prices.
Now this is the implicit price deflator, which I show for the umpteenth time. A surge in this measure of inflation generates a recession. (When the blue line rises, a blue bar follows) What is the point of causing a recession?
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