Discussion paper

DP14555 The Economics of Helicopter Money

An economy plagued by a slump and in a liquidity trap has some options to exit
the crisis. We discuss helicopter money and other equivalent policies that can reflate the economy and boost consumption. Traditional helicopter money, via the joint cooperation between the treasury and the central bank, depends critically on the central bank fully guaranteeing treasury's debt. We show that the central bank can do helicopter money on its own, without any treasury's involvement.


Benigno, P and S Nistico (2022), ‘DP14555 The Economics of Helicopter Money‘, CEPR Discussion Paper No. 14555. CEPR Press, Paris & London. https://cepr.org/publications/dp14555