Helicopter money - Financial definition
Financial acronyms
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Concise definition of the term helicopter money
Helicopter money is a last resort type of monetary stimulus strategy that consists of a central bank making direct transfers to the people through a one-time creation of money.
Comprehensive definition of the term helicopter money
It is sometimes suggested as an alternative to quantitative easing to spur inflation and economic output, when the economy is in a liquidity trap, i.e. when interest rates are extremely low and economic growth remains sluggish.
The concept stems from a thought experiment by Nobel Prize-winning economist Milton Friedman in 1969. He mused about what a helicopter flying over a community and dropping paper money would do to spending and saving.