Raghuram Rajan unsure about dropping money through helicopter

He questioned if global monetary policy was increasingly becoming part of the problem, not part of the solution

Policy makers around the world need to ask if central banks injecting money into the economy through "helicopter drop" is politically feasible or produce the intended targets, Reserve Bank of India Governor Raghuram Rajan said on Tuesday.

"The real point is again: It is not absolutely clear that throwing the money out of the window, or targeted checques to beneficiaries... will be politically feasible in many countries, or produce economically the desired effect," he said during a lecture at the London School of Economics.

He added that questions needed to be asked if global monetary policy was increasingly becoming part of the problem, not part of the solution.