Possible Introduction of Helicopter Money Great News in Noida

Helicopter money in developed countries can have an impact upon flats in Noida in positive ways. One of the top global investors has remarked that developed economies may soon resort to such extreme measures to try and increase demand for goods in developed countries. Helicopter money is credited directly to consumer’s bank accounts increasing their purchasing power and spurring demand goods within an economy. While interest rates are already low or even negative in certain economies, by injecting money directly into the bank accounts of households, shoppers are expected to increase purchasing goods leading to increased economic activity and greater sales for companies. Low-interest rates combined with helicopter money increases the liquidity in a market; however, helicopter money’s impact can be maneuvered far better than the QE policies currently being pursued by central bankers. While central banks across the globe are engaged in quantitative easing (QE), which is essentially money printing, the impact of helicopter money can be controlled with surgical precision. Quantitative easing results in the purchase of assets which prevent the value of such assets from dropping in value while at the same time injecting the value of such assets into the economy in the form of capital. Thus the capital used to buy troubled assets flows into financial instruments such as stocks raising their price; hence the stock market in the US is at new highs. However while QE leads money to flow into capital markets, Helicopter Money leads money directly into the hands of consumers and wherever else suitable in order to spur economic activity.

Direct capital injections can be targeted to be as precisely as laser beams and may lead to the construction of new infrastructure projects in developed economies if required. Such investments always bode well for economic activity. Furthermore, as interest rates remain low in foreign countries and foreign consumers may have more money in their bank accounts due to helicopter money, foreign investors are incentivized to seek markets which have higher interest rates and thus money from overseas shall likely flow into the coffers of builders in Noida from overseas household’s keen to invest in new projects in Noida. As pumping additional money into the hands of consumers (Helicopter Money) and low-interest rates mean lower capital returns for foreign investors, capital outflows to markets such as India where returns are higher is inevitable. Much of this money would flow into residential property in Noida and into residential property across India. In particular, luxury apartments in Noida may witness greater demand particularly from overseas investors and NRI’s as the value of luxury apartments is prone to sharper price increases than is the value of affordable housing in Noida.

Direct capital injections into an economy (helicopter money) if it is pursued shall signal the failure of monetary policy (QE) to bring about robust economic growth. Helicopter money had been advocated by Paul Krugman a Nobel Peace Prize laureate a few years ago. When such a policy is pursued it will mean that developed economies across the globe shall begin fiscal stimulus; essentially spending on large infrastructure projects. Consumers too shall receive a direct injection of capital into their bank accounts. Governments hope that helicopter money shall incentivize consumers to shop more thereby increasing economic activity in a country. Much of the excess capital from the combination of low-interest rates and greater liquidity from helicopter money shall flow into emerging economies driving up prices not only of stocks but also of property in Noida and in other large real estate markets in India. 

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