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WhatIsHelicopterMoney?

Ifahelicopterflewoverheaddroppingbanknotes,wouldyoupickthemupandspendthem?Whatifthegovernmentsentyouacheckfor$,noquestionsasked?Althoughthatmaysoundtoogoodtobetrue,it’sanideathat’sbeingtakenseriouslyrightnowasawaytokeepeconomiesmoving,astheimpactofthecoronaviruspandemicisfeltacrosstheworld.Sohowdoesthishelicoptermoneywork?

Aspeoplestayathomeandbusinessesshutter,governmentsandcentralbanksaroundtheworldareconsideringextrememeasurestosupporttheireconomiesthroughthecoronaviruscrisis.Theconsumptionofgoodsandservices,orconsumerspending,isoneofthekeydriversoftheeconomy.Consumerspendingaccountsfor58%oftheworld’sgrossdomesticproductorGDP.AndincountriesliketheU.S.andU.K.,it’sevenmorerepresentingawhoppingtwo-thirdsoftheirGDPs.So,ifconsumerspendingslowsdown,orstops,theeconomyrunsintobigtrouble.

Governmentsaroundtheworldareurgingtheircitizenstostayhome,astheyattempttocontainthespreadofthevirus.Andwhilethesemeasureswillhopefullysavelives,economiesarealreadyseeingbusinessclosuresandjoblayoffsasaresult.ThenumberofAmericansfilingforunemployment,forexample,skyrocketedtounprecedentedlevelsinMarch.Thoseclaimsthendoubledjustaweeklater.Withoutasteadystreamofin

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