Helicopter drops in an open economy when markets are incomplete
研究了市场不完全时开放经济中直升机撒钱的效果和最优货币政策，发现合作可让央行实现帕累托最优，非合作则加剧收入波动，凸显合作收益。
Abstract We characterize the spillover effects of helicopter drops and optimal monetary policy in a tractable two‐country overlapping generations model with incomplete markets. As helicopter drops can affect the distribution of income across countries, they create room for redistribution policies which are particularly relevant when agents are heterogeneous and markets are incomplete. Under cooperation, central banks can implement the conditionally Pareto optimal allocation using helicopter drops (and suctions) to “lean against the wind.” In a non‐cooperative setting, helicopter drops exacerbate the incomplete markets' friction by making income more volatile. This paves the way for gains from cooperation.