Policy proposal; central banks making direct money transfers to the public
Not to be confused with People's QE, Basic income, or Debt monetization.
Helicopter money is a proposed unconventional monetary policy, sometimes suggested as an alternative to quantitative easing (QE) when the economy is in a liquidity trap (when interest rates near zero and the economy remains in recession). Although the original idea of helicopter money describes central banks making payments directly to individuals, economists have used the term "helicopter money" to refer to a wide range of different policy ideas, including the "permanent" monetization of budget deficits – with the additional element of attempting to shock beliefs about future inflation or nominal GDP growth, in order to change expectations.[1] A second set of policies, closer to the original description of helicopter money, and more innovative in the context of monetary history, involves the central bank making direct transfers to the private sector financed with base money, without the direct involvement of fiscal authorities.[2][3] This has also been called a citizens' dividend or a distribution of future seigniorage.[4]
The name "helicopter money" was first coined by Milton Friedman in 1969, when he wrote a parable about dropping money from a helicopter to illustrate the effects of monetary expansion. The concept was revived by economists as a monetary policy proposal in the early 2000s following Japan's Lost Decade. In November 2002, Ben Bernanke, then Federal Reserve Board governor, and later chairman suggested that helicopter money could always be used to prevent deflation.
A monetary policy that involves helicopter money requires that central banks operate with negative equity. This touches on an old question in economics on whether money should always be fully backed by segregated assets (gold, loans) or whether lower levels of asset backing are warranted to counter deflationary pressures. This question is again relevant due to the negative side effects of low interest rate policies as well as the development of central bank digital currency.
^"Worthwhile Canadian Initiative". Retrieved 5 May 2016.
^Blyth, Mark; Lonergan, Eric; Wren-Lewis, Simon (21 May 2015). "Now the Bank of England needs to deliver QE for the people". The Guardian – via www.theguardian.com.
^Dylan Matthews (15 May 2015). "To fix the economy, let's print money and mail it to everyone". Vox. Retrieved 5 May 2016.
^"Interview with Peter Praet, Member of the Executive Board of the ECB, conducted by Ferdinando Giugliano and Tonia Mastrobuoni on 15 March 2016 and published on 18 March 2016". Archived from the original on 16 February 2020. Retrieved 28 March 2016. Helicopter money is giving to the people part of the net present value of your future seigniorage, the profit you make on the future banknotes.
Helicoptermoney is a proposed unconventional monetary policy, sometimes suggested as an alternative to quantitative easing (QE) when the economy is in...
include the idea of helicoptermoney whereby central banks would create money without assets as counterpart in their balance sheet. The money created could...
of helicoptermoney, using new technologies to issue helicoptermoney. Going beyond the failed transmission channels and distributing basic money directly...
Woodford, M (2013-05-20). "Helicoptermoney as a policy option". voxeu.org. Buiter, W. The Simple Analytics of HelicopterMoney Print Less, but Transfer...
central bank base money through transfers to the public could constitute a new channel for monetary policy transmission (i.e. helicoptermoney), which would...
particularly in the Eurozone, some have called for "QE for the people" or "helicoptermoney". Instead of buying government bonds or other securities by creating...
Some have envisaged the use of what Milton Friedman once called "helicoptermoney" whereby the central bank would make direct transfers to citizens in...
financing proposals such as "People's QE" or "helicoptermoney", and "green quantitative easing". Positive Money also adopted new tactics such as rallies in...
coin option The Economist 9 January 2013 Galí, Jordi (2020-03-17). "Helicoptermoney: The time is now". VoxEU.org. Retrieved 2021-03-31. Turner, Adair (2020-04-20)...
On January 26, 2020, a Sikorsky S-76B helicopter crashed in the city of Calabasas, California, around 30 mi (48 km) northwest of Downtown Los Angeles,...
rate. He famously used the analogy of "dropping money out of a helicopter", to avoid dealing with money injection mechanisms and other factors that would...
Igor Sikorsky in 1923, and was among the first companies to manufacture helicopters for civilian and military use. In short time periods, it also produced...
Kenneth Preston (1953–2009) took off in a stolen Bell UH-1B Iroquois "Huey" helicopter from Tipton Field, Maryland, and landed it on the South Lawn of the White...
economic impact, universal basic income and similar proposals such as helicoptermoney and cash transfers were increasingly discussed across the world. Most...
of Chicago Helicopter Airways Flight 698, business quickly dropped off so that by 1963 it was down to 3,000 passengers per day. Grant money ran out in...
European medium-sized, twin-engine, multirole military helicopter. It was the first production helicopter to feature entirely fly-by-wire flight controls. The...
damage there is to the helicopter, the harder it is to control. Money can be spent to repair a helicopter. If the helicopter is destroyed, it is lost...
killing in which the victims are dropped to their death from airplanes or helicopters into oceans, large rivers or even mountains. Death flights have been...
Social Media/". Fortune. Daniel J. Arbess (May 13, 2013). "Bring on the HelicopterMoney". The Wall Street Journal. Daniel J. Arbess (October 11, 2011). "China...
helicopter pilot, who turns out to be American; he steals the money and jumps out of the helicopter, leaving them scrambling for the controls. Adam Sandler...
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