QE for People’s 10 steps forward in 2016

2016 was marked with a series of successes in challenging the ECB’s strategy and bringing the discussion on monetary policy forward. Please find below 10 of the achievements we are most proud of.

1. We organised a conference at the European Parliament

In February we hosted a very successful and well-attended conference at the European Parliament thanks to key supporting MEPs Molly Scott-Cato, Fabio de Masi and Paul Tang. The conference was an important step to establish the campaign’s credibility within the EU. Check out the highlights from the event here. 

2. The European Parliament published a report on helicopter money

In April, the European Parliament’s research service dedicated a special policy report on the concept of ‘helicopter money’. The report mentions our work and is broadly positive.

3. A great event in Paris

We also started to build a national coalition in France, and raised our profile by organising a public conference on May 31st in Paris. Key supporters of the campaign presented different proposals for QE for People. The conference was well covered in the French media. Check out the highlights here.

4. 18 MEPs signed an open letter to the ECB

In June, we convinced 18 MEPs to sign a joint letter to Mario Draghi, asking the ECB to “dedicate significant expertise and resources to studying the viability and implementation of innovative policies”. The letter was covered by the Financial Times.

5. We demonstrated the feasibility of QE for People

In September we intensified our lobbying activities in Brussels. In order to convince more MEPs about the need for QE for People, we produced a policy briefing which summarizes how and why the ECB could distribute money directly to citizens. The report is one of the few papers which clearly shows why (and how) the measure would be legal.

6. The vast majority of the population would support QE for People

In October, a European-wide survey evaluated whether people would support the ECB for distributing money directly to individuals. The results showed that 54% would be in favour, with only 14% against. The survey also evaluates how people would spend the money.

7. The European Parliament criticized QE for the first time

In November, the European Parliament adopted its annual resolution on the ECB. In contrast to previous years, for the first time the parliament expressed important concerns on quantitative easing, especially on its lack of effectiveness and its undesired side-effects.

8. The ECB itself admitted QE for People would be legal

In December, the ECB itself came out with a public letter which broadly supports our view. The ECB said ‘helicopter money’ is legal, if it is designed within the monetary policy framework. This is probably the most insightful statement the ECB has ever made on this topic, which shows they are actually thinking about it!

9. We exposed the ECB’s support for climate change industry

We partnered with Corporate Europe Observatory to scrutinize the ECB’s corporate bonds purchases and found out that the ECB is indeed fueling polluting industries that are far away from the EU’s anti-climate change commitments. The report was mentioned in the Guardian and lots of other national media. Following up on this, Green MEPs decided to write a letter to the ECB.

10. We established a public-interest voice on monetary policy

In Europe list elsewhere, the debate one monetary policy is mostly dominated by the financial sector. We are the only European voice representing civil society in monetary policy issues. About 10,000 people are following the campaign. We are doing our best to make your voice heard!

2016 was incredibly busy and fruitful. Looking forward, 2017 looks even more exciting and promising. Yet new opportunities are emerging and more visible actions are becoming possible thanks to our growing list of supporters. Take part and join us!

Original post by Stan Jourdan on http://www.qe4people.eu/what_we_achieved_in_2016

ECB confirms ‘Helicopter Money’ is Legally Feasible under Conditions

Mario Draghi first discussed the notion of ‘helicopter money’ in March 2016, saying “it is an interesting concept.” Since then however, the head of the European Central Bank repeatedly stated that the idea that central banks could distribute money directly to citizens, was fraught with accounting-wise, technical and legal complexity.” However the ECB had declined at several occasion to specify in detail which were the foreseen legal obstacles.

In a letter dated 29 November to Spanish MEP Jonas Fernandez, the ECB finally provides clarifications. And our interpretation of the letter lead to the conclusion that those legal issues are very weak and solvable.

The QE for People campaign praises the ECB for finally providing this legal clarification. “By providing a detailed answer on this point, the ECB acknowledges its understanding of our proposal, which many economists say could bring significant benefits to the economy” said Stan Jourdan, QE for People campaign coordinator.

Helicopter money must be designed as monetary policy

Continue reading “ECB confirms ‘Helicopter Money’ is Legally Feasible under Conditions”