Bank of England (BoE) governor Mark Carney yesterday dismissed the possibility of advanced-economy central banks stimulating the economy via direct financing of government debt.

Direct monetary financing would see a central bank purchase government debt by issuing new currency. The government would then pass this on to the public via tax cuts or public spending.

The policy is often referred to as ‘helicopter money' after a proposal by Milton Friedman that freshly printed banknotes could be