Helicopter money

The term "helicopter money" goes back to the founder of the theory of monetarism Milton Friedman. In 1969 in work "Optimal quantity of money" he gave a hypothetical example of stimulation of demand by scattering of banknotes from the helicopter. The idea is that direct transfers to households are the easiest way to increase inflation to target indicators and to stimulate economic activity: having noticed increase in quantity of money in circulation, people will begin to spend more freely.

2019: Julius Baer predicts an era of "helicopter money" and negative taxation

In December, 2019 the director of the investment management of Julius Baer Swiss Bank Yves Bonzon predicts an era of "helicopter money":

"It can take meanwhile the form of negative taxation which did not have a precedent that will promote redistribution of purchasing power to groups with the smallest income". It draws parallels with the concept of "helicopter money".

Negative taxation is meant as policy of the regulator at which each adult citizen will receive the disposable tax subsidy of fixed size financed by the central bank.

"The negative tax uses both budget and tax, and monetary and credit mechanisms of regulation. And unconditional basic income is the budget and tax, not tied to a business cycle measure and cannot be adapted with ease for requirements of economy"  — Bonzon explained.

2016: Ray Dalio speaks about approach of an era of "helicopter money"

In 2016 the American billionaire, the founder and the managing director of a hedge fund of Bridgewater Ray Dalio spoke about approach of an era of "helicopter money".