What is Helicopter Money being suggested by World Experts?
With the increasing economic crisis, Helicopter Money is a solution being suggested by economic specialists all over the world.
What is Helicopter Money?
Helicopter Money was the term framed by an American Economist Milton Friedman. Helicopter Money is the monetary policy tool used for Quantitative Easing. It aims to dump money into a struggling economy.
Helicopter Money in simple terms is extension of non-repayable money towards state and central governments from central bank. The policy intends to make more money available for the people to nudge them to spend more.
Helicopter Money in Indian Economy
In India, Telangana Chief Minister K Chandrashekar Rao has suggested the concept for the state governments to revive economic growth. He asked the RBI to release 5% of GDP as Helicopter money.
Apart from the Telangana CM, CII has also recommended similar arrangement. CII has also recommended direct cash transfer of Rs 5000 to all the account holders whose annual income is below Rs 5 lakh. The Confederation of Indian Industries (CII) has recommended money transfer as one time action.
Category: Economy & Banking Current Affairs