The term “helicopter money” was coined by economist Milton Friedman in 1969 to describe a last-resort economic stimulus, when deflation threatens and interest rates are near zero. The term implies injections of cash direct to individuals, who will spend it and boost growth.
We are far from the situation Friedman was contemplating. Inflation in SA is 4.5% and real interest rates near 5%. However, we face a great danger in the coronavirus pandemic. The Spanish flu pandemic of 1918 killed nearly 5% of the then SA population of 6.5-million people...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.