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Helicopter money is a propulsion to the distribution of fiat...

  1. 69 Posts.
    Helicopter money is a propulsion to the distribution of fiat money. Even in its base form, it is still technically worthless and all commodities are prices on worthless money.

    fiat money
    noun
    inconvertible paper money made legal tender by a government decree.

    Helicopter money has been proposed as an alternative to Quantitative Easing (QE) when interest rates are close to zero and the economy remains weak or enters recession. Economists have used the term 'helicopter money' to refer to two very different policies. The first set of policies emphasizes the 'permanent' monetization of budget deficits.[1] The second set of policies involves the central bank making direct transfers to the private sector financed with base money, without the direct involvement of fiscal authorities.[2][3] This has also been called a citizens' dividend or a distribution of future seigniorage.[4]

    In economics, the monetary base (also base money, money base, high-powered money, reserve money, outside money, central bank money or, in the UK, narrow money) in a country is defined as the portion of the commercial banks' reserves that are maintained in accounts with their central bank plus the total currency circulating in the public (which includes the currency, also known as vault cash, that is physically held in the banks' vault).
    The monetary base should not be confused with the money supply which consists of the total currency circulating in the public plus the non-bank deposits with commercial banks.
 
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