A STUDY ON HELICOPTER MONEY AS A TOOL FOR QUANTITATIVE EASING

Abstract

In the present pandemic situation of the world, all countries whether economically sound or not are facing a drastic Economic state of affairs which may change the entire systems of the world. Every country is trying to develop its own ideas and packages for reviving from the downfall of the economy. As part of the economic reforms to be under taken the Hypothetical concept of Helicopter Money is gaining its stand in the discussions and penetrating to the minds of economists and experts to be a resort to start running the economy which is now at a standstill in many parts of the world. Helicopter money" is a term created by Milton Friedman in his work, 1969 "The Optimum Quantity of Money". It shows the money related reasons for having a circumstance of Inflation. In this concept Milton Friedman proposed a psychological study which comprised of dropping $1000 to an economy from a helicopter, to delineate the expenses of holding cash just as to exhibit an easy path for the Central bank to create inflation. (Friedman, 1969). It‟s a tool as to be used for Quantitative Easing.