You're listening to European Parliamentary Research Service podcasts on helicopter money.

Is it a cure for what ails the euro area?

In this podcast, we're going to talk money, helicopter money.

This term refers to additional free money distributed to citizens to relaunch stagnating economies.

Is this a partial cure of what is the European economy?

While some experts argue it would help jumpstart the EU economy, others are more skeptical

and warn about the dangers.

Want to know more?

Stay with us.

Imagine European Central Bank Chief Mario Draghi flying a helicopter over the euro area to throw money to the crowds below.

This is a very surreal thought, obviously.

However, the concept of helicopter money has taken off among some financial experts who see it as a possible cure for the weak European economies.

But what is helicopter money exactly?

The term was originally coined by US economist Milton Friedman in the 1960s.

In a tough game, he suggested that a helicopter fly over a community and drop bills from the sky

in the hope that this additional free money would make consumers scurry to the shops to spend their windfalls.

In Friedman's logic, the ensuing surge in demand would revitalise the economy

and avert the threat of deflation by persuading retailers to increase prices.

Definitely an interesting thought, but up to now it has never been tried out in real life

by any major central bank.

The question is, could it work in the euro area? Let's have a look at the situation first.

The financial crisis has led to economic stagnation in the EU, and the problem is especially

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