A helicopter drop refers to a term first coined by Milton Friedman as a rhetorical device intended to abstract away the effects of any monetary policy transmission mechanisms in a thought experiment regarding the addition of cash to the bank accounts of all citizens—as if dropped from a helicopter overnight.This term has come to refer to a figurative application of Friedman's metaphor, as a type of monetary stimulus strategy that increases the quantity of the money supply and directly distributes cash to the public in order to spur inflation—or rising prices—and economic growth. Helicopter drop policies have become a common feature of the response from policymakers to large-scale economic shocks since 2000.A helicopter drop is an expansionary fiscal or monetary policy that is financed by an increase in an economy's money supply. It could be an increase in spending or a tax cut, but it involves printing large sums of money and distributing it to the public in order to stimulate the economy. The term helicopter drop is largely a metaphor for unconventional measures to jump-start the economy during deflationary periods, which consist of falling prices.Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

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