NEW YORK, April 19 (Reuters) - Japanese Finance Minister Taro Aso on Wednesday brushed aside the possibility that the country’s central bank would resort to “helicopter money,” or direct underwriting of public debt to fund government finances.
“In reality, there are various problems to such ideas. For one, it would undermine the Bank of Japan’s independence and market confidence over monetary policy,” Aso said in a seminar at Columbia University.
“If we abandon our efforts on fiscal discipline, that could invite a bust in Japan’s finances or runaway inflation that would have a detrimental effect on the general public. We can’t allow that to happen,” he said. (Reporting by Leika Kihara; Editing by Leslie Adler)