“Purchase on the market of securities and government bonds by Central banks is non-standard measures, is a measure of “quantitative easing”. And typically, it is used countries that have already exhausted the possibility of using standard measures, which have rates of around 0% or even negative. And they need to take measures in order to boost inflation to return inflation to the target in countries where very low inflation”, – said Nabiullina. In Russia, the situation is different: the annual inflation by the middle of April was 2.9% (the target is 4%), the key rate – 6% per annum. Also, the Central Bank has all the possibilities for the use of standard tools of monetary policy, Nabiullina added.
In the current challenging economic conditions social support of citizens (growth of unemployment benefits, targeted support for families with children) is one of the key measures, said the head of the Central Bank. “With regard to the Central Bank, and confused sometimes discuss direct payments with so-called “helicopter money”. And not just direct payments – possible, necessary in such conditions.
But “helicopter money” as a way of conducting monetary policy and unconventional way, when exhausted, in fact, even the possibility of targeted quantitative easing, when the Central banks buy all sorts of bonds, not only the state, but “junk” rating – this topic is discussed, but for us as a tool of monetary policy – it is, of course, absolutely not relevant”, – said Nabiullina.
One of the measures of the US Federal reserve to combat the effects of coronavirus steel direct payments in the amount of $ 1,200 people with an annual income up to $ 75 thousand, while families with children will receive payments of $ 500 for each child. This kind of support is called “throwing money from a helicopter” (by analogy with the dropping of leaflets). It is assumed that direct payments specially “printed” the money will drive inflation and stimulate economic activity.