helicopter money
 n.— «it’s time to think about so-called “helicopter money.” While most people understandably worry primarily about the US housing market, the real threat to our economic security is now coming from the financial system. If this doesn’t function, central bank rate cuts won’t have much of an impact. Over the last few months, as banks increasingly have been forced to cut back on their lending, the power of the central banks has steadily waned. Helicopter money bypasses the banking system. The government issues bonds directly to the central bank and the cash that’s created can be placed directly in the pockets of households and companies through a series of tax cuts. The recipients, in turn, are then able to spend more easily, freed from the liquidity constraint imposed upon them by the banking system.» —“Radical measures needed to get us out of this terrifying game of Russian roulette” by Stephen King Independent (United Kingdom) Mar. 17, 2008. (source: Double-Tongued Dictionary)

Tagged with →