Preventive carrying of cash and you will store-of-wide range motives

Preventive carrying of cash and you will store-of-wide range motives

Additionally, those individuals making the income inside the cash could have had quicker opportunity to spend otherwise put they within their typical method

The significant escalation in an excellent banknotes throughout the economy contrary to the background from reduced bucks costs implies that the new need for bucks when you look at the pandemic has likely become driven by the hoarding actions. This new apparently strong interest in highest-well worth banknotes implies a life threatening preventive discounts or store-of-money motive because of the houses and you will people. (more…)