What does cash hoarding mean for the economy?

and

May 14, 2020

∙ Paid

New Zealand banks noticed an increase in cash withdrawals by households since the day of lockdown announcement. Banks believe this might be due to the panic stockpiling of nervous households as was mentioned in the article.

In this post I want to discuss what drives the households to behave in this way, and how this comes into our thinking about economic…

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