Financial Economics

Helicopter Money C oronavirus has shown its impact on the world economy. The lockdown imposed by nations has savoury depleted economic activity. Thus the world is in recession. To support the economy, many countries have proposed relief packages. In this scenario, monetary policy is on the rise, i.e. Helicopter Money .  Helicopter Money is a concept used by economists to boost the economy of a country. To understand helicopter money and how it can help revive an economy, let’s first understand what is helicopter money. Helicopter money meaning:- This helicopter money was first introduced by the noble price winner economist Milton Friedman in 1969 in his research paper “The Optimum Quantity of Money”. This concept was focused upon raising liquidity in the economy to counter the recession by provoking people to spend more which will boost the demand for a product or service which then can lift the economic output which will help the economy get out of recession. In simple words, the gov

How is India proliferating its Foreign Exchange Reserve?     M oney is at the core of every economic activity in the world. Governments need cash to run daily activities. Authorities usually raise funds either by capital gain or revenue gains, i.e. by selling goods and services or taking out loans. Nations usually hesitate to acquire loans as countries have to pay interest etc. And only apply for the loan for a longer period. New Delhi uses  Indian foreign exchange reserves  (made up of Indian foreign exchange or  Indian foreign exchange markets) to tackle short term needs. Thus, most of the Govt. Tries to use funds from revenue gains, but in the current coronavirus, crisis authorities are not having an adequate amount of reserves thus nations are now turning their attention to their foreign exchange reserves to counter its requirement. Thus, eventually, countries’ foreign exchange reserves are plummeting rapidly. The Kingdom of Saudi Arabia, Republic of China (Taiwan) and Hong Kong