July 6

COVID-19 Isn’t Killing Cash. People Are Hoarding More of It


People appear to be bunkering cash amid the coronavirus outbreak, according to a study that seeks to debunk the notion that the pandemic was hastening the demise of paper money due to e-commerce or fears of infection.

Anecdotal evidence across advanced economies suggests a decisive move away from cash, with lockdowns boosting online sales and more stores only accepting card payments. But data cited by former Bank of England policy maker Charles Goodhart and co-author Jonathan Ashworth show a marked increase of bills in circulation in the U.S., Canada, Italy, Spain, Germany, France, Australia, Brazil and Russia.

Photo courtesy of frankieleon.

Source: Bloomberg (link opens in a new window)

Coronavirus, Finance