Monday, April 13, 2020

Helicopter Money ...?


                            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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