National Culture and the Demand for Physical Money During the First Year of the COVID-19 Pandemic

Radosław Kotkowski (radoslaw.kotkowski@umk.pl)

No 351, NBP Working Papers from Narodowy Bank Polski

Abstract: There was a significant increase in the demand for physical money during the COVID-19 pandemic. This stood in stark contrast to the decline in demand witnessed during previous pandemics. However, the change was not uniform and varied significantly between countries. By employing the “national culture” framework to identify the drivers of this variation, this study found that uncertainty avoidance, as well as social norms regarding gratification, played a major role. This suggests that some central banks should hold larger cash reserves to mitigate the risk of uncertainty and that the national culture framework may prove useful in researching the international differences in past, present, and future money demand.

Keywords: COVID-19 pandemic; money demand; currency in circulation; national culture; uncertainty avoidance (search for similar items in EconPapers)
JEL-codes: E41 E51 I12 (search for similar items in EconPapers)
Pages: 23
Date: 2022
New Economics Papers: this item is included in nep-ban, nep-mon and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://static.nbp.pl/publikacje/materialy-i-studia/351_en.pdf (application/pdf)

Related works:
Journal Article: National culture and the demand for physical money during the first year of the COVID-19 pandemic (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbp:nbpmis:351

Access Statistics for this paper

More papers in NBP Working Papers from Narodowy Bank Polski Contact information at EDIRC.
Bibliographic data for series maintained by Jakub Growiec (mis@nbp.pl).