Central bank looking to spur inflation and growth, there is the option of throwing money out of a helicopter

This would mean creating money and sending it directly to citizens, who would then spend the cash, helping prop up the economy.

But central bankers have been reluctant to try it, partly because they have never done it before.

It also sounds like something that might stoke inflation expectations at a time when policymakers are worried about the opposite happening.

There is also concern about what it would do to household debt levels.

But Mark Carney, the Bank of England governor, has said he is looking into ways to stimulate the UK economy.

Last year he told UK politicians that helicopter money was an option for the central bank to explore in a "further loosening" of monetary policy.

The Bank of Japan went further than any other major central bank by launching negative interest rates on certain reserves commercial banks held with it.But it sought to reassure savers by securing commercial banks' commitment to not cut deposit rates below zero and pass on the negative rates onto individuals.

Helicopter money is an unconventional monetary policy tool that may spur growth and inflation but could cause more harm than good

There's been a lot of talk lately about helicopter money and the threat it poses to the UK economy.

The idea is that the Bank of England could print money then give it directly to people, with the aim of stimulating economic growth

The plan is seen as controversial and is not supported by the government, for various reasons.

How does helicopter money work?

Why does anyone think it might kick-start the economy?

Is it a good idea?

Isn't this just printing money?

What do critics say?

Why are proponents so keen on this policy?

Helicopter money can be a positive thing, but it should be taken into consideration.

When a central bank adds money to the economy by printing more money and giving it to consumers, it is known as "helicopter money," according to Investopedia.

When banks are reluctant to lend, this strategy can help boost spending in the economy. A kind of "direct stimulus," helicopter money aims to create high inflation and boost economic activity.

A handful of countries have pushed for even more aggressive tactics like helicopter money as concerns about Brexit’s impact on the U.K. economy mount.

“If you’re talking about helicopter money, an infrastructure bank or bond buyback plan, those are all things which could accelerate growth in the short term,” said Chris Williamson, chief economist at Markit. “These aren’t things we’d be looking at six months from now but maybe in a year or 18 months from now if growth hasn’t picked up as much as hoped for."

Helicopter money is a tactic used by central banks to help boost spending in the economy by printing more money and distributing it.

It is the proposal to give citizens of a country free money in order to relaunch their economy.

It comes from the fact that money would fall from the sky like helicopters.

It was proposed by Adbdul El-Sayed, a former chief health officer for Detroit.

It is being considered by the Bank of England (BOE).the BOE governor Andrew Bailey said it's not completely off the table.When inflation is too low and economic growth stalls, governments can rely on two "levers" to change that.

Lever 1: Cutting interest rates (already at historically low rates).

Lever 2: Quantitative easing (QE) buying up assets from banks. QE has already been done in huge quantities since 2008. But this time many people have proposed going further, with helicopter money. Here’s how it would work...

Helicopter money could be an option if conventional monetary stimulus fails.

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