"Helicopter money" is more likely after last week's shock election results in Britain - Deutsche Bank

According to a recent report by Reuters, Deutsche Bank analysts on Monday claimed that "Helicopter money" - giving people more cash in the hope they will spend it - is more likely after last week's shock election results in Britain.

Key quotes (via Reuters):

  • Signs of strong turnout from young voters in Thursday's snap election, which left the ruling Conservative party without a parliamentary majority, could have major repercussions for politics and markets in Britain and possibly beyond
  • In short, governments can possibly be forced to spend more across the developed world until bond markets rebel at the high level of debts that this implies and then central banks would be forced to monetise this debt
  • Thursday's election makes helicopter money more likely ... This is different from QE (quantitative easing) as it's central banks buying bonds that are attached to fresh spending rather than independent of it

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