The economics of helicopter money

Pierpaolo Benigno and Salvatore Nisticò

Journal of Monetary Economics, 2025, vol. 152, issue C

Abstract: The economics of helicopter money is fundamentally tied to price-level determination in monetary models. In frameworks with intrinsically worthless currencies, the issuer’s liabilities define the unit of account, and uniquely empower the issuer to implement helicopter money and escape liquidity traps. While traditional helicopter money requires cooperation between the treasury and the central bank — with the central bank critically guaranteeing treasury debt — we demonstrate that helicopter money can also be effectively executed independently by government or private currency issuers, without treasury involvement.

Keywords: Helicopter money; Price-level determination; Liquidity trap (search for similar items in EconPapers)
JEL-codes: E50 (search for similar items in EconPapers)
Date: 2025
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Related works:
Working Paper: The Economics of Helicopter Money (2022)
Working Paper: The Economics of Helicopter Money (2020)
Working Paper: The Economics of Helicopter Money (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:moneco:v:152:y:2025:i:c:s030439322500039x

DOI: 10.1016/j.jmoneco.2025.103768

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