Coronavirus panic fuels a surge in cash demand

Charles Goodhart and Jonathan Ashworth

No 14910, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Over the past decade the media have regularly reported on the imminent death of cash amid rapid innovation in payment technologies. However, cash in circulation has actually been growing strongly in many counties. Perhaps unsurprisingly given Coronavirus-related health concerns, there have been renewed calls to abandon cash and some observers have argued the virus will accelerate its demise. Data thus far suggest, however, that currency in circulation has actually surged in a number of countries. While the economic shutdowns and increased use of online retailing are currently diminishing cash’s traditional function as a medium of exchange, it seems that this is being more than offset by panic driven hoarding of banknotes.

Keywords: Currency usage; Coronavirus; Payment technologies; Hoarding in panics (search for similar items in EconPapers)
JEL-codes: E40 E41 E49 E63 N10 (search for similar items in EconPapers)
Date: 2020-06
New Economics Papers: this item is included in nep-his, nep-mac, nep-mon and nep-pay
References: View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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