Nepal, July 20 -- Five decades ago, Milton Friedman, perhaps the most celebrated monetary economist in the 20th century, introduced the term 'helicopter money' in his 1969 book, The Optimum Quantity of Money to illustrate the inflationary effect of money supply. But these days, helicopter money is synonymous to expansionary policies, whether fiscal or monetary, and is considered to positively affect real growth. The policy of helicopter money is compared to 'debt-financed fiscal stimulus combined with a quantitative easing programme by the central bank'.

Nepal Rastra Bank, the central monetary authority of Nepal, while announcing its monetary policies for the new fiscal year on July 17, has heavily relied on 'helicopter money' to address...