« It is a buzzing word during the Corona Crisis.
« Meaning: central banks (like RBI - Reserve Bank of India)
printing money and making payments directly to the individuals or the private
players.
« First
coined by Milton Friedman in 1969, when he wrote a story/parable
of dropping money from a helicopter.
« When: When
Interest rates near Zero and the Economy in rercession (i.e., in liquidity
trap). Also to prevent deflation.
« It is an alternative to the Quantitative easing (QE). QE is a monetary policy whereby a central bank buys
predetermined amounts of government bonds or other financial assets in order to
add money directly into the economy.
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