Sunday, May 10, 2020

Helicopter money

*It is an unconventional  monetary policy tool.

* It involves printing large sums of money and distributing it to the public, to stimulate the economy during a recession (decline in general economic activity) or when interest rates fall to zero.

*Under such a policy, a central bank "directly increases the money supply and, via the government, distribute the new cash to the population with the aim of boosting demand and inflation."

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