« It is a buzzing word during the Corona Crisis.
« Meaning: central banks (like RBI - Reserve Bank of India) printing money and making payments directly to the individuals or the private players.
« First coined by Milton Friedman in 1969, when he wrote a story/parable of dropping money from a helicopter.
« When: When Interest rates near Zero and the Economy in rercession (i.e., in liquidity trap). Also to prevent deflation.
« It is an alternative to the Quantitative easing (QE). QE is a monetary policy whereby a central bank buys predetermined amounts of government bonds or other financial assets in order to add money directly into the economy.