15) Helicopter Money Flashcards
1
Q
Is it giving money through Helicopters ?
A
NOOOO – That is Public TV’s definition .
2
Q
Then what is Helicopter money ?
A
It is an Unconventional Monetary policy tool aimed at bringing a flagging economy back on track, Involves printing large sums of money
3
Q
Who coined this term ?
A
American economist Milton Friedman
4
Q
Why is it in news ?
A
Telangana CM has suggested RBI to adopt this to help State Govts to kickstart economic activity in India
5
Q
So what happens exactly ?
A
Extension of non repayable money transfer from central bank to the State and Central Govts to infuse liquidity in the system
