Because helicopter money does not rely on increased borrowing to fuel the economy, it does not create additional debt and interest rates can remain unchanged. In general, helicopter money stimulates spending and economic growth more effectively than quantitative easing because it immediately increases aggregate demand (the demand for goods and services).

While government money drops resulting from debt may not increase consumer spending because the debt must be repaid, it is commonly assumed that'money finance' will stimulate the economy.

Helicopter money refers to the direct distribution of money to the public by a central bank, typically to stimulate economic growth. It offers several advantages.

First, it boosts consumer spending by increasing disposable income, leading to higher demand for goods and services. This can effectively combat deflation and stagnation. Unlike traditional monetary policies, such as lowering interest rates, helicopter money directly impacts individuals, bypassing financial institutions.

Second, it provides immediate economic stimulus, especially during crises, without adding to public debt, as it doesn’t require government borrowing.

Lastly, it enhances economic equality, as funds are often distributed universally, benefiting lower-income households proportionately more. This can reduce economic disparities while jumpstarting growth in times of severe downturns or recessions.