MNI POLICY: ECB Never Discussed Helicopter Money - Lagarde

By Luke Heighton

     FRANKFURT (MNI) - The Governing Council of the European Central Bank has

never discussed using helicopter money, and the ECB has not decided whether

doing so would contravene the EU's prohibition on monetary financing, it was

confirmed Wednesday.

     President Christine Lagarde was asked whether the issue of whether

helicopter money "is fiscal or monetary in nature," in a letter from Belgian MEP

Phillipe Lamberts.

     "Let me reaffirm that the Governing Council has never discussed the issue

of helicopter money," Lagarde replied in a written response dated Apr. 21 and

published a day later. "Hence, the ECB has not adopted a formal position on the

matter. It should be noted that the term helicopter money has been associated

with a wide range of policy proposals.

     "In many cases, these proposals do not fully address the associated

operational, accounting and legal complexities nor provide a comprehensive

cost-benefit analysis of the full economic and monetary impact."

--MNI Frankfurt Bureau; +49-69-720-146; email: luke.heighton@marketnews.com

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com

[TOPICS: M$X$$$,M$$EC$]