Helicopter money is an unconventional economic policy where the central bank prints new money and distributes it directly to the public or government to stimulate the economy during recessions or deflation.
This concept typically comes up when conventional monetary policy tools (like cutting interest rates) have been exhausted.
How it works: Direct money distribution stimulates consumer spending, which boosts demand, production, and employment — driving economic growth.
The biggest risk is hyperinflation and currency devaluation. Once started, this policy can be very difficult to stop.
In Bangladesh, direct helicopter money remains theoretical. However, cash assistance programs during COVID-19 came close to this concept in practice.