In an interview with ABC News, the governor of the Bank of Albania, Gent Sejko, was asked about printing money and putting it on the market as a way to alleviate the consequences of the coronavirus crisis.
In economics, it is known as Money Helicopter and is a monetary policy suggested as an alternative to quantitative easing when the economy is in a liquidity trap. During this policy, large sums of money are printed and distributed to the public to stimulate the economy during the time when interest rates go to zero.
"The theory of the Money Helicopter has been heard, so throwing money from a helicopter translates into Albanian, but it's not exactly like that, but it's a direct injection or direct distribution of money from the central bank to the citizens [...]" - said Sejko.
He went on to say that "quantitative easing will be done by buying government securities."
"Quantitative easing would only be done in this way by purchasing government securities. There is this scenario, we have announced it. It's the latest scenario if the government has used up all its resources. "
The governor said that reopening and returning to normal is giving the first signs.
