Ladies and Gentlemen, Start Your Engines...

Tyler Cowen is enlisted in the helicopter drop squadron:

Marginal Revolution: Will a helicopter drop of money stimulate aggregate demand?: I am happy to see Paul Krugman address the question. He writes.... "[A:] helicopter drop is just like a temporary lump-sum tax cut. And we would expect people to save much or most of such a tax cut — all of it, if you believe in full Ricardian equivalence." I hold a different opinion for two reasons.  First, cash and short-term bonds may be...