BoE economists find CBDC could permit helicopter money

RAF Merlin helicopter hugs valleys in the lake district

The creation of a central bank digital currency (CBDC) could alleviate some of the challenges around monetary finance, or so-called helicopter money, according to research by two Bank of England economists.

In a helicopter money policy, a central bank injects money straight into the economy, either through cash handouts or a tax cut paid for by money printing.

Under standard assumptions, a central bank that chooses to pursue such a policy will give up control over the short-term interest rate.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: