Is Helicopter money good or bad for economy??

By -
Best book for upsc(cse) aspirants on amazon. buy now
           It is an unconventional monetary policy of RBI to inject cash into economy through printing large sums of money. Money distribute among the general public to stimulate the economic growth. 
It is different from conventional policy of RBI. 
In conventional method rbi decrease repo rate aftermath banks gives money to common people with less interest .and  common people take more loan and use it to buy things and invest money in different business .   

Government transfers helicopter money directly to people account and people no need to pay back this money .because of this people have fear of pay back of  money so they spend their all money in market. 
The basic principle behind this is that the central banks want to increase inflation and output. 
     Therefore ;this assumption  implied that the influx of money in the economy will be used to purchase goods and service. 


      NEGATIVE  CONSEQUENCES 
1- may lead to hyper inflation.

2-  Rapid Depreciation of Rupee. 

3-  people may keep this money in their savings accounts.

                              -Pratham shankhdhar


Comments

  1. Rekha sharmaJune 7, 2020 at 12:44 AM

    This is so helpful simple language used to explain. Keep it on this type of interesting topic

    ReplyDelete
  2. The social poetJune 7, 2020 at 8:47 AM

    Special knowledge.thanks

    ReplyDelete
  3. Chetan SharmaJuly 23, 2020 at 1:30 PM

    Keep writing such informative blogs.

    ReplyDelete

Post a Comment

Popular posts from this blog

ZEALANDIA CONTINENT, 8th continent of the world.

By -
Image
          What is zealandia        I t is also known as N ew Z ealand c ontinent. Scientists say- it is 8th continent of the earth.most of it land mass [94%] submerged beneath of the Pacific ocean.                                 Area of zealandia I t has  2 million-square-mile [5 million kilometers]. It is situated east of Australia amd beneath modern-day New Zealand. It's size approx 2/3rd of Australia .                History of zealandia  S cientists discovered the sprawling underwater mass in 1990s . The land mass may have been completely submerged about 23 million years ago. It was highlight in news 3 year ago because scientists gave it formal continent status.         Why is it in  news  nowadays    S cien...
Read more

Highest civilian award of Republic of India, Bharat Ratna.

By -
Image
B HARAT RATNA  is the highest civilian award of the  Republic of India  . The award was originally limited to achievements in arts, literature, science, and public service but it was expanded to include “  any field of human endeavour “ in December 2011 by indian government. pic source - google Every country has its highest civilian award--- : :: Russia —Order of Saint Andrew the Apostle :: The United States of America — Presidential Medal of Freedom :: United Kingdom — The George cross :: Pakistan — Nishan-e-Pakistan :: France — National Order of the Legion of Honour (Ordre national de la Légion d’honneur) :: Japan — Grand Cordon of the Order of the Rising sun About this award — 1–The medallion is cast in Bronze . 2-The medallion is designed like the leaf of pipal tree with sunburst in the centre and Bharat Ratna is engraved underneath it. 3- On the backside, indian emblem of...
Read more

what is FOREX [foreign exchange] Reserves??

By -
Image
        What is Forex Reserves.               I t's under Central bank or other monetary authority that are primarily available to balance payments of the country. This is an external assets of the country. This is  cash and other reserve assets. It influences the foreign exchange rate of its currency and maintain confidence in financial markets.                    M ost nations hold the vast majority of their foreign currency reserves in U.S Dollars  followed by Euros .                     F oreign currency reserves are crucial to a nation's economic well-being. Without enough reserves country may be unable to pay for critical imports in critical situation; such as crude oil etc.                I n 1991; we had only so  forex reserves that was enough  fo...
Read more