Helicopter money is different and rare compared to
quantitative easing. This method is particularly useful when economic
conditions are worsening and the purchasing power of the people is depleted. Here
the central bank distributes money directly to the public (customers). This
does not mean lakhs of rupees in our bank account, but something like that.
When people's incomes and expenses fall, they are not
interested in buying anything. When people's purchasing power drops, prices of
products fall. This is known as deflation or deflation. To prevent this, people
must be unwillingly given money. That is why they fall on the markets and buy
in excess. Cash enters the economy and escalates from the crisis. The
helicopter door is how to disperse money. That's why this monetary policy is
named after it.
How to send money directly to the public? Cancellation of
any mandatory payment. For example repealing our income tax for some time.
Doing so can stop our tax yearly payment. So we have a lot of surplus. We make
purchases to spend it. That's it ..
In 1969, American economist Milton Friedman proposed this
approach, and in 2002 another economist, Ben Bernanke, made improvements to it
and brought it to the forefront ...
Translated from whats app source
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