helicopter money

Etymology
Coined by in 1969 using the metaphor of money being dropped from the sky (out of nowhere).

Noun

 * 1) Money that is created and dispersed by the central bank.

Usage notes
While very similar to quantitative easing (QE), helicopter money differs from QE in how the central bank creates money and who gets to spend the money that is created. With QE the central bank creates money by making a loan: buying bonds or some similar instrument, and then (usually) rebating the interest on that instrument. Ultimately, the money is repaid to the central bank, which produces a net increase in the monetary base. Helicopter money does not use any financial instrument. The net effect in both cases is that the central bank creates money, thereby increasing the monetary base. However, in the case of QE, the issuer of the bond (usually the central government) gets to spend the money, while with helicopter money, the central bank controls how the money is spent.